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Investing/speculating is all about finding value opportunities where the upside potential is large to exponential, while the downside risk is minimal in comparison. Currently there is such an opportunity fitting into such a favorable risk vs. reward profile. The upside potential offers anywhere from 100% to 400% return potential(and not over many years but possibly many months) while the downside from current levels is relatively minimal.(small gap just below 5 representing about 10-12%) I am talking about a market cap of $3 billion with sales over $800 million. I expect the potential to be realized in short order and would not be surprised to see either a merger or hostile takeover attempt sometime in the next six months. Hecla Mining (HL) is extremely undervalued at $5.50 per share. 
Chartsmaster, I almost always adhere to Weinstein axiom: never buy a stock below its 30 wk EMA. The 30 week EMA is currently at $6.74. Since July the trend is down, and as you pointed out there is a gap at $5.00. I like the company as well, but until the trend is up and moves above the $6.74 level, I will wait and watch. Thanks for posting.
Can understand you having a trading discipline with certain rules. Makes a lot of sense especially for short term trading. To me, looking for an undervalued situation, I don’t want to pay 20+% more to satisfy a rule, negating a good chunk of the value proposition. I am more than willing to risk a 10-12% draw down, which if it happens would warrant adding to the position unless something changed dramatically with the fundamentals. Each to his(her) own. Good luck.