Tesla Motors Inc (NASDAQ:TSLA), Facebook Inc (NASDAQ:FB) and J C Penney Company Inc (NYSE:JCP) still have massive gains to make despite recent growth in their stocks’ price, Jim Cramer said in a segment on CNBC’s “Off The Charts”.
According to Cramer, his data about Tesla Motors Inc (NASDAQ:TSLA) which hit an all-time high on Tuesday, Facebook Inc (NASDAQ:FB) which is within a point of its peak, and J C Penney Company Inc (NYSE:JCP) come from chartist and RealMoney.com analyst Dan Fitzpatrick.
Tesla Motors Inc (NASDAQ:TSLA), Cramer said, hit an all-time-high surging to $272 on Friday before hitting another all-time-high on Tuesday increasing $14.35 or 5.3% on an upgrade by Stifel Nicolaus.
However, Cramer said that Fitzpatrick has pointed out to him an interesting trend with Tesla Motors Inc (NASDAQ:TSLA) which is that its chart is forming the classic “cup and handle” trend, a pattern which Cramer describes as one of the most reliable patterns for a stock that is about to breakout.
According to Fitzpatrick, the high-than-average volumes for the car maker on Friday and Tuesday is a clear indication that institutional investors who can sway stock prices are buying the company’s stock.
How high can the stock of the luxury electric vehicle climb still? Cramer said that one method to find out is to look at how much the stock advanced after it hit its last all-time high. Using this method, the car manufacturer’s stock is projected to run up to $389, or an increase of 37%.
Another method, Cramer said, is to measure the distance between the bottom of the “cup” to its peak. Using this method yields a projected increase of 25% or a run to $355 for the car manufacturer’s stock.
As for Facebook Inc (NASDAQ:FB), the “Mad Money” host said he was ecstatic when Fitzpatrick told him that the company’s stock’s chart is also forming a “cup and handle” pattern since his trust fund has a lot of the company’s stock.
According to Fitzpatrick, Facebook Inc has a “beautiful” chart, Cramer said. Using the chart of Facebook Inc (NASDAQ:FB)’s stock price, the analyst projected that the social network’s stock will climb up to $100.
Meanwhile, J C Penney Company Inc (NYSE:JCP), Cramer discussed, is also about to break out. He said that while he was initially worried about the company’s stock price slipping, data from Fitzpatrick reassured him that the company will climb in the near future. According to Cramer, J C Penney Company Inc (NYSE:JCP)’s stock is about to climb up to about $15.
“Tesla, Facebook and J. C. Penny have all had enormous moves higher of late. But the charts, as interpreted by Dan Fitzpatrick, suggest that all three stocks have not some, but a lot more room to run. This is not a market where it pays to fight against the chartist or the charts,” Cramer explained.
Tesla Motors Inc (NASDAQ:TSLA) investors includes John Thaler’s Jat Capital Management which reported 948,778 shares in the company by the end of the second quarter of the year.
Philippe Laffont’s Coatue Management is a shareholder in Facebook Inc (NASDAQ:FB). The hedge fund reported about 5.87 million shares in the company by the end of the second quarter.
J C Penney Company Inc (NYSE:JCP) shareholders includes Patrick Mccormack’s Tiger Consumer Management which reported about 7.23 million shares in the company in the same period.