Spammy niche - site slowly declining in rankings and traffic - Next Steps?

[SerpsGuy]

I promote some things in a spammy niche, and one of those sites is slowly losing rankings. Because it is to late to do anything, since the new Panda update is rolling out right now - what steps are best for me to take?

Should I focus on a new website in the same niche?
Should I focus on adding more content to the site losing rank?

Additionally - What should I NOT do?

Any tips from folks who have gone through the ups and downs are welcome. I just want to use my time wisely.

[aristotle]

Well I don't know what you mean by a "spammy niche". Is it a niche dominated by spammy websites?

Maybe there's a lot of flux in the rankings if most of the sites eventually get hit by penalties. In this type of environment does it really make sense to put a lot of time and effort into a long term project, continually trying to expand and improve your old site? Or is there a reason why the churn and burn approach is popular in some niches?