Santo Mining Corp (SANP)

[starpicker]

This play is way bigger than selling cigars in China.

The recent name change to "Cathay Lifestyle Group, Inc." indicates a major shift in business strategy.

Their company byline now reads ---

"...we are a lifestyle brand integration, marketing, design, development, education and consultant for high value sales channel of luxury lifestyle products in the leisure and entertainment sector. We have a diverse portfolio of licensed brands as well as a wide range of product categories."

It's pretty clear they're positioning themselves as a marketing agency for western companies wanting to promote luxury brands to China.

They already have a successful cigar business in place so leveraging existing distribution channels and marketing capabilities to take on other high-end products makes good business sense.

The company presentation shows us the marketing services they've been offering to cigar manufacturers ---

* Trade Shows
* News Releases
* Public Relations
* Fundraisers
* Promotional Events
* Media Buying
* Creative Design
* Web Development
* Branding Strategy
* Sporting Event Marketing
* Copywriting/Translation
* Direct Marketing (Print & Web Advertising)
* Social Media Campaigns
* Mobile Marketing

It also tells us they've hooked up with House Films of Shanghai to provide video production services for ---

* Broadcast TV (commercials)
* Corporate video presentations
* Digital billboard content
* Online video

What they're also saying is that they're expanding their product involvement to potentially include high-end ---

* liquor
* wines
* accessories
* ???

Clearly this new strategy opens Cathay up to huge new income avenues that could bust this ticker wide open.

Normally agency clients sign a binding contract for a set annual promotional spend. The marketing firm is responsible for designing and rolling out
campaigns across multiple media channels over the course of the year. Agencies typically make 15% on ad space sold with margins on creative work as high as 30-35%. Since media outlets get paid in advance, agencies get their money upfront as well.

With agencies, revenue can accrue very quickly because media buys (broadcast, radio, billboard, bus shelter & online ads, etc.) get booked as sales when ad dollars are passed through the agency to the media provider. This means that even a small company like Cathay could generate millions in sales from a handful of clients, especially if they get involved in a China-wide media blitz for some big brand.

The other facet to this is, since they already have sales and distribution channels in place for cigars, it's not a stretch to assume that they plan to wholesale these new diverse luxury brand categories as well through their existing buyer network - meaning more income!

A quick look at the management bios shows an experienced marketing team with deep connections in China's hospitality, entertainment and night-life industries. Being that Cathay is run by public relations professionals, we should get timely news releases about any new contracts or promotional campaigns they're working on.

The CEO is actively cleaning up the SANP shell and we should see a new ticker shortly. With projected 2016 sales at $5,000,000, at the current market cap, the PPS should easily moving over a penny (30+ bagger). How long this will take is anyone's guess but we should get some positive traction soon.

Shares 1,100,622,127
Share price .0003
330,186 market cap.

Presentation download ---

https://www.dropbox.com/s/ktj86zp0hwuxzfm/CathayCigarsofAsia.pdf?dl=0