All transactions in the company's systems involve two cards and a point-of-sales terminal -- nothing goes through a host mainframe as in banking and credit/debit card systems, because all the relevant information is stored on the smart cards. This cuts out the need for a merchant to have a telephone or Internet connection.

Net1's systems also provide a secure channel for social welfare agencies to distribute funds to beneficiaries and for businesses to pay their employees.

The company has shown operating income growth for the past three quarters on a quarter-over-quarter basis and year over year for the past three years. With no debt and $183 million in cash on the balance sheet, it is in a great position, not to mention that it has generated more than $60 million in operating cash flow over the trailing 12 months. At an EV/EBITDA of 13, this is a great opportunity.

Our last company is in Mexico. America Movil is a wireless communications company that has more than 90 million wireless subscribers in Latin America and the U.S. The company also offers fixed-line and wireless services and sells prepaid wireless services and wireless phones throughout the U.S., Puerto Rico and the U.S. Virgin Islands. The company has grown its operating income and cash flow from operations year over year for the past three years. With an EV/EBITDA of 9, this is a great way to play the growth in wireless communications across Latin America.

With the global economy reaching maturation, the key to investing success is in finding undervalued opportunities domestically and in countries that nobody wants to touch. I think these three companies will track the growth of their home markets and will attract foreign investors looking for gems.

P.S. from TheStreet.com Editor-in-Chief, Dave Morrow:
It's always been my opinion that it pays to have more -- not fewer -- expert market views and analyses when you're making investing or trading decisions. That's why I recommend you take advantage of our free trial offer to TheStreet.com's RealMoney premium Web site, where you'll get in-depth commentary and money-making strategies from over 50 Wall Street pros, including Jim Cramer. Take my advice -- try it now.
At the time of publication, Altucher and/or his fund was long Net1 UEPS, although positions may change at any time.

James Altucher is a managing partner at Formula Capital, an alternative asset management firm that runs several quantitative-based hedge funds as well as a fund of hedge funds. He is also the author of Trade Like a Hedge Fund and Trade Like Warren Buffett. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback; click here to send him an email.

Interested in more writings from James Altucher? Check out his newsletter, TheStreet.com Internet Review. For more information, click here.

TheStreet.com has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from TheStreet.com.

If you liked this article you might like

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup

This Week's 'Barron's' Roundup