Hello Words from a dot 😊 that's a great question!

This valuation framework is a bit simplified but regarding your points:

1) If a stock crashes artificially and now the P/E and EPS is even better, I think it might be a good opportunity. On the other hand, I would stay away from stocks that are too hyped from reddit.

2) That's a tricky one. A few years ago, Luckin Coffee had great numbers and even the Motley Fool recommended it. It ended up being a huge accounting fraud and the price of the stock price dropped 95%.

I think the only way you could have detected this, was spending some time in China and see that Luckin Coffee shops were empty.

I would rely less on stock analysis from banks and brokerage firms and try to do the research yourself, understand the business, visit the business, read the reports... all this if you have the time of course :)