Cramer's 'Mad Money' Recap: Higher Learning

Cramer likes ITT because it is best of breed. All of the four publicly traded for-profit colleges, Apollo Group (APOL Quote), Corinthian Colleges (COCO Quote), Career Education (CECO Quote) and ITT have had legal woes and/or have been the subject of investigations, said Cramer.

But, ITT's lawsuits are in the past, he said, and it has the best balance sheet in the group. Furthermore, some might argue that ITT's degrees are "more legitimate" than some of the other online-based schools' "because ITT is a technical school," he said.

Of the other schools, Cramer said Apollo, though it will be a huge beneficiary if the rule is repealed, is a "tad expensive" at about 30 times earnings given that legal proceedings against it are still under way.

Career Education also has strong growth in its Internet division, but its 2003 annual report is being investigated by the SEC, said Cramer. The company is also the subject of a lawsuit alleging sexual harassment at one of its colleges, and 60 Minutes did a story about its "incredibly aggressive salespeople," he said.

Finally, Cramer said Corinthian has "lawsuits everywhere," is restating earnings, and it's costs are spiraling out of control. "This place is a joke!"

In response to a question about Education Management (EDMC Quote), Cramer said the company is fine, but he prefers ITT.

Sniffing Out Bankrate

Herb Greenberg, senior columnist for MarketWatch, joined Cramer for their regular rap session. Cramer asked Greenberg about fax-to-email communications provider J2 Global Communications (JCOM Quote).