Cramer's 'Mad Money' Recap: Bonds and the Big Banks

It's Automatic

Cramer welcomed Automatic Data Processing (ADP) CEO Gary Butler onto the show asked about the company's $6 buyback

"We spun off a brokerage business, which was about a $2 billion subsidiary and a stand-alone equity, and we think that will do quite well," Butler said. "But that leaves us with a much faster growth business, which is very focused and which we think will give us a tremendous return on management."

"We operate in a huge market where there is $80 billion of opportunity between the U.S. and globally, so we think the appreciation for our shareholders will be much stronger," he continued.

Further, ADP had somewhere around $2.7 billon in cash on its balance sheet during the last quarter. "Over the last two years we've spent $2 billion a year on share buybacks and dividends, and hopefully we will be able to stay that course in the year ahead," Butler said.

When Cramer asked why ADP doesn't go private, Butler said he's into returning value to long-term shareholders, not to private equity firms. "When you have a company that grew EPS 25% last year and will be over 20% this year ... and you can continue to grow the share price, I think we can deliver more long-term value by staying the course," Butler said.

Lightning Round

Cramer was bullish on Aecom Technology (ACM), Medarex (MEDX), Acadia Pharmaceuticals (ACAD), Nastech Pharmaceutical (NSTK), Hain Celestial Group (HAIN), Downey Financial (DSL) and Peabody Energy (BTU).

Cramer was bearish on Perficient (PRFT), CB Richard Ellis Group (CBG), McAfee (MFE), TFS Financial (TFSL), Optium (OPTM), Akamai Technologies (AKAM) and Limelight (LLNW).

For more of Cramer's insights during the Lightning Round, click here.

---

Want more Cramer? Check out Jim's rules and commandments for investing from his popular book by clicking here.

>To order reprints of this article, click here: Reprints