Overstone International Value Fund on Pason Systems Inc.
Thesis
Pason supplies technology to the oil industry and benefits when stronger commodity prices bring more drilling rigs into service. Rig counts are up more than 10% in 2026 and may climb further if prices remain high. More importantly, the fund believes revenue could double over the medium term even with a flat rig count. Shares trade at roughly 12 times normalized earnings, creating a low valuation relative to the expected expansion.
“we believe Pason can double its revenue over the medium term even if the rig count stays flat.”
Key risks
- Lower oil prices could reduce drilling activity.
- Additional rig growth is conditional on elevated oil prices.
- Revenue doubling may take longer or fail to materialize.