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Definition of 'Pick-And-Shovel Play'
A strategy where investments are made in companies that are providers of necessary equipment for an industry, rather than in the industry's end product. A pick-and-shovel play, in practice, could be within the oil industry; an investor would purchase stock in a company that manufactures seismic data equipment that exploration and production (E&P) companies need to find new oil and gas deposits, rather than on the E&P company itself.
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Investopedia explains 'Pick-And-Shovel Play'
The expression may have been derived from the California gold rush, where many of those who profited did so by providing the miners with picks, shovels and other equipment needed for gold mining. The idea behind pick-and-shovel plays is that, in the case of E&Ps, for example, it doesn't matter if the E&P Company finds oil and gas or not, they will still need to purchase specialized equipment either way.
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Search results for 'Pick-And-Shovel Play'
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http://stocks.investopedia.com/stock-analysis/moneyshow/ThePickandShovelofEnergyStocks.aspx
... This is a good way to play growth through the down-and-dirty side of the energy
industry, writes Stephen Ellis of Morningstar StockInvestor. ...
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http://stocks.investopedia.com/stock-analysis/2010/Ode-to-Joy-Global-JOYG-TCK-VALE-CNX-BUCY-IR-CAT0607.aspx
... of Joy Global (Nasdaq:JOYG), as this leading mining equipment company is very much
a pick and shovel play on ongoing theme of global commodity exploitation. ...
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http://stocks.investopedia.com/stock-analysis/2010/The-Hottest-Thing-In-Natural-Gas-Steel-SLX-TS-XOM-XTO-CHK-TOT-X-PKX-MT-SID0324.aspx
... A Pick and Shovel Play All of this natural gas drilling, especially in the newly
discovered Marcellus Shale in Pennsylvania, is having a dramatic effect on ...
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http://stocks.investopedia.com/stock-analysis/2009/Buying-Back-At-The-Right-Time-APOL-TMO-DIS-PKW1109.aspx
... other life science applications. The company is a pick and shovel play on
the growing health care industry. Aside from that growth ...
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http://stocks.investopedia.com/stock-analysis/2011/Coal-Fired-Portfolio-Still-A-Good-Bet-KOL-PCX-JRCC-NSC0504.aspx
... many of the "pick and shovel" plays such as Joy Global, (Nasdaq:JOYG). Alternatively,
the PowerShares Global Coal (Nasdaq:PKOL) is another broad play on the ...
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http://stocks.investopedia.com/stock-analysis/2009/It-Might-Be-Time-For-Some-Oil-Value-Plays-WRES-WEL-IO-PDS-BQI-HERO0417.aspx
... in these markets Become An Oil And Gas Futures Detective.) The Niche Service Stocks
"Pick and shovel" plays are often a great way to play an industry. ...
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