If the money is needed immediately, then sell for whatever is offered. Otherwise, wait 'em out in an effort to enhance realized value. The situation is this. Someone created a speculative potion for themselves by buying a distressed security at what seemed to have been an attractive discount, i.e., $14 for a $25 stock. They were betting that the stock wouldn't blow up. Well, they lost the bet, and the stock did blow up. So now they have a salvage operation on their hands. If the position is tiny --as it should have-- in terms of AUM, then whatever happens won't matter. The likely losses were anticipated (or should have been anticipated), and they are being more than offset by other positions in the account. In other words, "you win some; you lose some". That how investing works. If the position were mine, I'd wait 'em out, and then dispose of the stock/warrants when they were received, and move on.
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