There's Method in the Kraft

People are still not behind Altria (MO - commentary - Cramer's Take) as nearly as they are the other tobacco stocks even as the other stocks have no restructuring value.

For example, the spike in Reynolds American (RAI - commentary - Cramer's Take), which was been hugely outperforming Altria anyway, has just as much kick as Altria. This, despite the fact that we are just getting closer and closer to the unlocking of Altria value.

I would point out that today the poignancy of the Altria moves is even more front-and-center because the sleeping giant of Kraft (KFT - commentary - Cramer's Take) -- the most hated of food stocks -- may be waking up. Almost all the other food companies have been making acquisitions and showing real growth in the last few years except Sara Lee (SLE - commentary - Cramer's Take) and Kraft.

This morning, Kraft added some key United Biscuits units that shows me the company may no longer be the backwater it is. Why is this important? Because every time I hear about the breakup of Altria, everyone really devalues or undersells the worst of Kraft because it has been poorly managed and has had little growth.

The way to grow if you are a food company is to acquire and then ram through the new products into the distribution chain. That's what Kraft used to do.

I regard this deal as a huge positive. I continue to think that Altria's stock is worth $100 on a break up and it will get there. It's a cheap stock with three divisions, domestic -- good dividend; international, good growth; and now a possibly a step up in growth for Kraft.

At the time of publication, Cramer was long Altria.

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At the time of publication, Cramer was long Altria.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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