PAYI just announced that it has entered into a distribution agreement with Alibaba.com Limited, the world’s largest marketplace for global trade and the leader in business-to-business (B2B) e-commerce with more than 42 million registered users from more than 240 countries and regions. The company has a market capitalization of over $64 billion USD and reported earnings in 2008 of RMB 3.0 billion (approximately $440 million USD), an increase of 39% over 2007. According to iResearch, it was the largest online B2B company in China in 2006 based on the number of registered users and market share in China by revenue.

Tao Fan, COO of Pay88, added, “As a result of this new relationship, PAVI’s subsidiary, Qianbao Technology, will be able to capitalize on Pay88’s distribution channels in southwest China to offer Alibaba’s services to small and mid sized entities in what has traditionally been an under served area. We are excited about the potential for growth this offers to both our companies.”

News first and now the chart!

• The MACD is bullish and above the zero line….a strong bullish indicator
• The stock is still looking overbought as indicated by the Stochastics, but with the bullish MACD trend the stock can be at these levels for quite a while
• Volume has come back into the stock lately but yesterday’s down day was accompanied by lower volume…indication of accumulation

Yesterday was a good day for traders of PAYI as the stock retraced some of its recent gains and could offer a good entry point for traders.

I loved seeing it bounce and then hold support at the .18 mark yesterday.  I would use that as my “stop loss” on this one.  Right now, .26 looks like a great place to take short term profits if you can get them.