Last month David Einhorn’s Greenlight Capital made a non-binding proposal to BioFuel Energy Corp. (NASDAQ:BIOF) to buy most of the company’s stock and extend a 10%, $150 million term loan, and its stock has risen from $3.14 to $8.75 at yesterday’s close as investors get more and more excited about the deal. “At Homebuilder peer group’s median P/E ratio of 16, a transformed BIOF could potentially trade at $24-$40 per share, multiples higher than its current price of $5.20,” wrote HBC Marquis Partners, LLC portfolio manager Farukh Farooqi in an April 14 letter to investors. Farooqi has added a long position…