1. American Physicians Service Group (AMPH) sells medical liability insurance and manages investments.
The numbers: Third-quarter profit fell 10% to $6.4 million, or 92 cents a share. Revenue grew 13% to $22 million. The company's gross margin shrank from 64% to 49%, and its operating margin decreased from 56% to 43%. American Physicians Service has $30 million of cash and $6.6 million of debt.
The stock: American Physicians Service has advanced 8% during the past year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 9, a discount to insurers. The shares offer a 1.4% dividend yield.