a question of free accumulation, page-10

The problem with this theory is you expect the shares to suffer as big a loss as we saw when they dropped from 26 to 14 within a matter of weeks. That may not occur again, and what you are doing is pegging yourself to past the shares past performance that may never eventuate. Sure things could go south again and quick, but they could also go north just as quick.
What by chance you did follow your strategy and the price continued to move up?
You may likely continue to think the stock is overvalued and end up either sitting on that dividend money, or invest it in some other stock, or worse spend it. All the while you are waiting for that magic crash to happen.
By the time that pull back occurs - well no body knows - you may no longer be actively following the stock.
I am sure there are people who do use this strategy that you mentioned, but I don't know how successful it would be in the long term.