Shares of Sears Holdings (SHLD) are down 2% on Thursday, despite the retail company beating on earnings per share and revenue expectations.

While the headline numbers may look good, there are still lingering concerns. For instance, Sears reported a comparable-store sales decline of 7%, while K-Mart comps dropped 3.3%, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment.

The company continues closing stores and margins remain under pressure. Management is looking for ways to return to profitability, particularly through its high-quality brands including Kenmore, Craftsman and DieHard.

"It's a very sub-optimal situation," Cramer said of Sears Holding, adding that the company received a $300 loan from CEO Eddie Lampert's hedge fund in order to make it though the holiday season.

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J.C. Penney (JCP) - Get J. C. Penney Company, Inc. Report is taking advantage of Sears' shortcomings, Cramer noted. It has capitalized on appliance sales in recent quarters, something that used to be a stalwart business at Sears. 

The tricks never stop at Sears, Cramer said. The big investors involved keep buying the stock and management keeps finding new ways to keep the "balls juggling." 

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.