Andrew Snyder says investors need to look beyond the chaos on Wall Street if they want to profit in this crisis. Strong and established firms have been dragged down by the toxic banking sector and are now selling at bargain prices. The share buybacks of Microsoft (NASDAQ:MSFT), Altria (NYSE:MO) and Nike (NYSE:NKE) this week show they are undervalued. They also generate income through solid dividend payments.
This from Today’s Financial News:

As an investor, I need to be able to assign values to things. If I do not know what the future holds, I cannot make calculations with even a hint of certainty. I can’t assign a value to a company if I have no idea what assets will remain on its balance sheet.

It is impossible to invest in any financial institution with any sort of certainty. All you would be doing is making a very risky gamble.

Fortunately, the financial sector is far from the only game on Wall Street. With the banking world in turmoil, valuations of other American companies have been drug deep into undeserved territory.

An oasis of safety and profitability

For proof, look at the news from Microsoft (NASDAQ:MSFT) and Nike Inc. (NYSE:NKE). Investors in both companies are smiling today thanks to news of major increases in the firms’ share buyback programs.

The maker of the software that runs the world announced this morning it is increasing its share repurchase program by $40 billion, while increasing its dividend by two cents. And the company that helps the world run comfortably, Nike, announced it will purchase another $5 billion worth of shares from the Street.

Both of these announcements show that some companies believe they are undervalued and will see positive times ahead. It also helps current investors sleep better at night knowing there is a firm technical floor under the share price. In a market as tumultuous as this one, these are the kinds of companies you need to be studying and investing in.

Last week, I recommended shares of Altria (NYSE:MO). It is another strong company that is buying back its own shares, while paying a hefty dividend. If you have not already, grab some shares of this vice-industry powerhouse.

Parts of Wall Street are downright scary this week. The answer is simple. Stay away from them.

Head to the undervalued companies with proven business models and strong balance sheets with figures you can actually trust and measure.

Take a look at the three companies I mentioned, plus the multitude of firms in similar situations, and invest away. Do not be afraid. As this market rebounds, you will be glad you followed my advice and did not stash your cash under your mattress.

Source: Markets in flux: No bailout needed for Nike (NKE), Microsoft (MSFT) or Altria (MO)