First half earnings took a big dip as Challenger completely exits its Malaysia operations. It previously had 3 stores in Msia and has failed to execute its growth strategy. The stock is down 15% this year, from a high of around 60 cents to 49 cents now. On the bright side is that dividends had been maintained. I expected Challenger to make about 3.8 to 4 cents for the full year while maintaining full year dividends at around 2.5 cents. At 12-13 times earnings with a dividend yield of 5% and net cash position, Challenger is probably fairly priced already. Given Challenger's failure to expand into Malaysia, I think the days of Challenger growing its earnings by 10-20% is over! I guess its more likely for future earnings to be pretty stagnant around 4 cents and probably they would consider a higher payout ratio, anything 60-80% would be ......