Cramer's 'Mad Money' Recap: All's Well With Altria

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Altria (MO) isn't just a good stock, it's a "great" stock, James Cramer said on his "Mad Money" TV show Thursday evening.

The stock pays a 4.5% dividend and is a "perfect" defensive play for a weak market, said Cramer. Furthermore, Morgan Stanley issued a report earlier in the day valuing the company at $105 a share in the likelihood it splits up its tobacco and food businesses. Cramer believes that estimate is conservative.

The main problem with Altria until now has been litigation risk, but that risk has been "vastly reduced," said Cramer. "Tobacco is through that gauntlet," he said. Altria has only two lawsuits remaining against it, and Cramer thinks the company will prevail in both.

Altria shares closed at $72.54 Thursday.

Sears 'Mon Back

Cramer issued a 'mon back* on Sears Holdings (SHLD), which is down nearly 22% from its 52-week high of $163.50 set in July.

"I like it when good stocks come in because you get a good deal," Cramer said of Sears, after its stock dropped more than 5% Thursday to $127.81 on the heels of disappointing second-quarter results.

"Today ... right now, in this period, Sears has bottomed!" exclaimed Cramer. "Maybe Sears drops a couple more points. But, this is where the [multiyear] turnaround ... starts to happen."

"Those disappointing earnings ... they belong to [former CEO] Alan Lacy. ... Lacy did nothing with Sears, and he wasn't going to do anything with Sears Kmart," said Cramer.

Controlling shareholder Eddie Lampert replaced Lacy with new CEO Alwyn Lewis. Now that Lampert's got his man, Cramer says "the pain is at last going to be over" at Sears.

"The waiting is done," Now is the right time to buy. "I remain optimistic about the future."