The company announced that it will merge with NextEra Energy (NEE) and shares jumped more than 15% on Thursday in response. But according to Cramer, the co-manager of the Action Alerts PLUS portfolio, that's simply not enough.
On CNBC's "Cramer's Mad Dash" segment, he explained that the company is worth $33.50 per share, including the company's banking unit, American Savings Bank, which is worth about $8 per share.
Sears reported better-than-expected earnings per share and revenue results for the third quarter. However, the company still lost nearly $550 million in the quarter and revenues declined almost 13% year-over-year.
While this stock is a favorite among short-sellers, it's tough to sell because so much of the float is controlled by chairman and CEO Edward Lampert, Cramer said.
-- Written by Bret Kenwell
TheStreet Ratings team rates SEARS HOLDINGS CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEARS HOLDINGS CORP (SHLD) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow."
You can view the full analysis from the report here: SHLD Ratings Report