Agreed, except the part about not averaging down. Someone who has 10,000 shares at $5 invested $50,000 and now for another measly $3200 he/she could double their position. They also get their avg PPS down to just over $2. Sounds like a smart move to me.
I will give you an advice, if you are adding when the company starts talking you have to make sure you do it at a reasonable price unless of course it is IA or topline results. If it goes to $5 after a short squeeze just on an investigation report that might not be a great timing to buy.
That is why you must add to position when sentiment is low and market cap a gift. If you are patient you will make a lot of money buying this stock.