your way of analysing share is valid. there are two sides to a coin. no analysis is complete until both sides have been explored.
shares go through fashion phases, not in a manner dissimilar to mini skirts! indeed it has been said that hem lines rise during bull market years and lower during bear years (now you can see why i am a happier man during bull years!!)
when a share falls wihtin a fashionable sector or does something fashionable then it can take off. once a share has taken off then its own momentum, caused by the crowde stamped, would naturally take it beyond its point of balance (fair price). the opposite is true as shares sink.
as for shorting, i have no problems with it. it is not illegal, at least not in the west! shorting is not only harmful, it does generate cash flow for a striken company that can be useful.
