Boats, boats boats. We love 'em this year. Long ones, skinny ones, ones that carry oil and ones that carry grain. We like silver boats, white boats and boats with red stripes on top. If it floats and carries materials from ports in the Middle East to ports on the Gulf of Mexico, or from Brazil to Australia, or from Chile to Shanghai, we are there.

When they look back on this period a few years hence, they might call this the Summer of Shipping. Shipping stocks have been performing like champs, especially recently. One big reason for the success of ocean shippers is that, despite their advance lately, they are still really cheap. Take Overseas Shipholding (OSG), for example. It stormed to a new high last week.

OSG owns the second largest oil tanker fleet in the world, with 144 vessels under both U.S. and international flags. It operates out of offices as far afield as Athens, Manila, Newcastle, New York, Singapore and Tampa, and sends paychecks to 4,000 employees. This year, OSG has jumped 59% amid a surge in the price of crude oil. Yet, it remains remarkably undervalued, and I think that after a brief pause it should tag at least $110 or better over the next 12 months.