The Securities and Exchange Commission has not necessarily reviewed the information in this filing and has not determined if it is accurate and complete.
The reader should not assume that the information is accurate and complete.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 13F

FORM 13F INFORMATION TABLE
OMB APPROVAL
OMB Number: 3235-0006
Estimated average burden
hours per response: 23.8
COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 COLUMN 8
VALUE SHRS OR SH/ PUT/ INVESTMENT OTHER VOTING AUTHORITY
NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DISCRETION MANAGER SOLE SHARED NONE
AAON INC cs 000360206 18,372 575,024 SH   SOLE   517,670 0 57,354
ADTRAN INC cs 00738A106 608 22,500 SH   SOLE   22,500 0 0
ADVANCED ENERGY INDS INC cs 007973100 19,889 870,040 SH   SOLE   815,990 0 54,050
AFLAC INC. cs 001055102 20,040 300,000 SH   SOLE   300,000 0 0
ALCOA INC cs 013817101 338 31,830 SH   SOLE   31,650 0 180
ALLEGHENY TECHNOLOGIES INC. cs 01741R102 547 15,350 SH   SOLE   15,350 0 0
AVON PRODUCTS INC cs 054303102 9,916 575,847 SH   SOLE   575,847 0 0
BANK OF NY MELLON cs 064058100 698 19,965 SH   SOLE   19,710 0 255
BEBE STORES INC cs 075571109 13,553 2,547,510 SH   SOLE   2,278,790 0 268,720
CA INC cs 12673p105 23,869 709,325 SH   SOLE   663,795 0 45,530
CALLAWAY GOLF CO cs 131193104 20,489 2,430,523 SH   SOLE   2,231,208 0 199,315
CARNIVAL CORP cs 143658300 4,017 100,000 SH   SOLE   100,000 0 0
CEDAR REALTY TRUST INC cs 150602209 3,922 626,527 SH   SOLE   547,227 0 79,300
CHESAPEAKE ENERGY CORP cs 165167107 14,384 530,000 SH   SOLE   530,000 0 0
CHEVRON CORPORATION cs 166764100 568 4,550 SH   SOLE   3,725 0 825
CHICOS FAS INC cs 168615102 11,094 588,840 SH   SOLE   588,840 0 0
CHUBB CORPORATION cs 171232101 442 4,575 SH   SOLE   3,275 0 1,300
CITY HOLDING CO cs 177835105 18,898 407,893 SH   SOLE   376,652 0 31,241
CLIFFS NATURAL RESOURCES INC cs 18683K101 14,258 544,000 SH   SOLE   544,000 0 0
CORNING INC cs 219350105 29,433 1,651,665 SH   SOLE   1,651,265 0 400
CROCS INC cs 227046109 18,198 1,143,060 SH   SOLE   1,078,760 0 64,300
CRYOLIFE INC COM cs 228903100 3,354 302,414 SH   SOLE   302,414 0 0
DEVON ENERGY CORPORATION cs 25179M103 501 8,100 SH   SOLE   8,100 0 0
DIANA SHIPPING INC cs y2066g104 21,487 1,616,750 SH   SOLE   1,482,870 0 133,880
DIME COMMUNITY BANCSHRS cs 253922108 19,848 1,173,032 SH   SOLE   1,085,011 0 88,021
DOUBLE EAGLE PETROLEUM cs 258570209 195 84,809 SH   SOLE   84,809 0 0
DOVER CORPORATION cs 260003108 685 7,100 SH   SOLE   7,100 0 0
ENCORE WIRE CORP cs 292562105 23,012 424,568 SH   SOLE   385,799 0 38,769
ENNIS INC cs 293389102 41,107 2,322,427 SH   SOLE   2,250,070 0 72,357
EVOLUTION PETROLEUM CORP cs 30049a107 8,189 663,591 SH   SOLE   597,466 0 66,125
EXELON CORPORATION cs 30161n101 21,522 785,760 SH   SOLE   785,630 0 130
FELCOR LODGING TRUST INC cs 31430F101 2,784 341,163 SH   SOLE   341,163 0 0
FLIR SYSTEMS INC cs 302445101 19,144 636,000 SH   SOLE   636,000 0 0
FORD MOTOR CO cs 345370860 2,283 147,990 SH   SOLE   71,460 0 76,530
FREIGHTCAR AMERICA cs 357023100 18,911 710,415 SH   SOLE   648,670 0 61,745
GAP INC cs 364760108 269 6,875 SH   SOLE   6,875 0 0
GENESCO INC cs 371532102 5,803 79,430 SH   SOLE   69,500 0 9,930
GLAXOSMITHKLINE cs 37733w105 17,403 325,969 SH   SOLE   303,929 0 22,040
GRAHAM CORP cs 384556106 20,570 566,835 SH   SOLE   523,430 0 43,405
GRANITE CONST INC cs 387328107 21,311 609,223 SH   SOLE   571,475 0 37,748
GULF ISLAND FABRICATION cs 402307102 12,999 559,820 SH   SOLE   529,197 0 30,623
HALLADOR ENERGY CO cs 40609p105 3,046 377,866 SH   SOLE   368,091 0 9,775
HALLMARK FINL SVCS INC cs 40624q203 14,799 1,665,563 SH   SOLE   1,515,454 0 150,109
HARMAN INTERNATIONAL cs 413086109 20,260 247,523 SH   SOLE   223,143 0 24,380
HARTFORD FINANCIAL SVCS GRP cs 416515104 19,926 550,000 SH   SOLE   550,000 0 0
HCC INSURANCE HOLDINGS cs 404132102 8,283 179,517 SH   SOLE   179,317 0 200
HELMERICH & PAYNE cs 423452101 700 8,325 SH   SOLE   8,325 0 0
HEWLETT-PACKARD COMPANY cs 428236103 217 7,740 SH   SOLE   7,740 0 0
HOOKER FURNITURE CORP cs 439038100 15,647 938,075 SH   SOLE   830,520 0 107,555
HORACE MANN EDUCATORS cs 440327104 16,126 511,281 SH   SOLE   469,046 0 42,235
HOUSTON WIRE AND CABLE cs 44244k109 15,790 1,180,127 SH   SOLE   1,085,632 0 94,495
HUNTINGTON BANCSHARES INC. cs 446150104 21,471 2,225,000 SH   SOLE   2,225,000 0 0
INTEL CORP cs 458140100 26,184 1,008,647 SH   SOLE   949,457 0 59,190
ITRON INC cs 465741106 454 10,950 SH   SOLE   10,950 0 0
JACOBS ENGINEERING GROUP, INC cs 469814107 661 10,500 SH   SOLE   10,500 0 0
JOY GLOBAL INC cs 481165108 21,524 368,000 SH   SOLE   368,000 0 0
JPMORGAN CHASE & CO cs 46625h100 16,987 290,480 SH   SOLE   265,555 0 24,925
KMG INC cs 482564101 14,829 877,949 SH   SOLE   817,525 0 60,424
KNOLL INC cs 498904200 16,697 911,892 SH   SOLE   853,334 0 58,558
LANDEC CORP cs 514766104 15,542 1,282,360 SH   SOLE   1,186,870 0 95,490
LEAPFROG ENTERPRISES cs 52186n106 15,143 1,907,230 SH   SOLE   1,765,700 0 141,530
LINCOLN ELECTRIC HOLDINGS cs 533900106 298 4,175 SH   SOLE   4,175 0 0
LOWES COMPANIES INC cs 548661107 287 5,790 SH   SOLE   5,790 0 0
MACK CALI REALTY CORP cs 554489104 6,444 300,000 SH   SOLE   300,000 0 0
MCGRATH RENTCORP cs 580589109 20,577 517,001 SH   SOLE   478,506 0 38,495
MERCURY SYSTEMS INC cs 589378108 6,440 588,159 SH   SOLE   534,909 0 53,250
METHODE ELECTRNCS INC cs 591520200 57,254 1,674,596 SH   SOLE   1,607,049 0 67,547
MICREL INC cs 594793101 17,032 1,725,650 SH   SOLE   1,603,000 0 122,650
MICROSOFT CORP cs 594918104 21,142 564,854 SH   SOLE   564,570 0 284
MOSAIC CO cs 61945c103 12,551 265,525 SH   SOLE   265,525 0 0
MYRIAD GENETICS INC cs 62855j104 15,737 750,090 SH   SOLE   694,785 0 55,305
NEW YORK COMMUNITY BANCORP cs 649445103 630 37,375 SH   SOLE   37,375 0 0
NEWELL RUBBERMAID INC cs 651229106 20,742 640,000 SH   SOLE   640,000 0 0
NEWPARK RESOURCES INC cs 651718504 19,203 1,562,479 SH   SOLE   1,449,064 0 113,415
NOKIA CORP ADR cs 654902204 20,558 2,534,860 SH   SOLE   2,351,845 0 183,015
NUCOR CORP cs 670346105 592 11,085 SH   SOLE   11,085 0 0
OLYMPIC STEEL INC cs 68162k106 15,535 536,067 SH   SOLE   484,127 0 51,940
OMNICARE INC cs 681904108 6,694 110,900 SH   SOLE   110,900 0 0
OSIRIS THERAPEUTICS INC cs 68827R108 556 34,600 SH   SOLE   34,600 0 0
PC-TEL INC cs 69325Q105 14,268 1,490,952 SH   SOLE   1,490,952 0 0
PEABODY ENERGY CORP cs 704549104 17,714 907,000 SH   SOLE   907,000 0 0
PITNEY BOWES INC cs 724479100 26,683 1,145,195 SH   SOLE   1,061,275 0 83,920
PLEXUS CORP cs 729132100 18,338 423,603 SH   SOLE   389,477 0 34,126
RELIANCE STEEL & ALUMINUM cs 759509102 326 4,300 SH   SOLE   4,300 0 0
ROCKY BRANDS INC cs 774515100 1,980 135,864 SH   SOLE   135,864 0 0
RUDOLPH TECHNOLOGIES INC cs 781270103 17,362 1,478,865 SH   SOLE   1,337,526 0 141,339
RUTH'S HOSPITALITY GROUP INC cs 783332109 17,374 1,222,675 SH   SOLE   1,086,855 0 135,820
SANDERSON FARMS INC cs 800013104 2,919 40,360 SH   SOLE   40,360 0 0
SCANSOURCE INC cs 806037107 21,967 517,731 SH   SOLE   486,016 0 31,715
SILICON IMAGE INC cs 82705T102 2,141 348,125 SH   SOLE   296,800 0 51,325
SPARTAN MOTORS INC cs 846819100 19,186 2,863,615 SH   SOLE   2,658,115 0 205,500
SUNCOR ENERGY INC cs 867224107 12,988 370,550 SH   SOLE   370,550 0 0
SYNAPTICS INC cs 87157d109 22,639 436,970 SH   SOLE   404,010 0 32,960
TENNANT CO cs 880345103 3,039 44,815 SH   SOLE   42,940 0 1,875
THOR INDUSTRIES INC cs 885160101 346 6,270 SH   SOLE   6,270 0 0
TIDEWATER INC cs 886423102 18,140 306,065 SH   SOLE   305,755 0 310
UNISYS CORP cs 909214306 26,506 789,577 SH   SOLE   739,657 0 49,920
UNUM GROUP cs 91529y106 4,555 129,845 SH   SOLE   78,235 0 51,610
US ECOLOGY INC cs 91732j102 36,453 980,171 SH   SOLE   943,671 0 36,500
VAALCO ENERGY INC cs 91851c201 17,181 2,493,614 SH   SOLE   2,309,541 0 184,073
VASCO DATA SECURITY INTL cs 92230y104 3,213 415,591 SH   SOLE   360,361 0 55,230
VONAGE HOLDINGS CORP cs 92886t201 15,246 4,578,525 SH   SOLE   4,099,025 0 479,500
WELLS FARGO & CO cs 949746101 693 15,265 SH   SOLE   15,265 0 0
WESTMORELAND COAL CO cs 960878106 534 27,693 SH   SOLE   27,693 0 0
WINNEBAGO INDUSTRIES cs 974637100 10,396 378,721 SH   SOLE   349,791 0 28,930
XEROX CORP cs 984121103 16,140 1,326,200 SH   SOLE   1,326,200 0 0
ARCHER DANIELS 0.875 02-15-14 cv 039483AW2 44,970 42,500,000 PRN   SOLE   42,500,000 0 0
CHESAPEAKE ENERGY 2.75 11-15-3 cv 165167BW6 13,593 13,000,000 PRN   SOLE   13,000,000 0 0
ILLUMINA INC. 0.25 03-15-16 cv 452327AC3 45,849 33,000,000 PRN   SOLE   33,000,000 0 0
NAVISTAR INTL CORP 3.0 10-15-1 cv 63934EAL2 28,630 28,000,000 PRN   SOLE   28,000,000 0 0
NEWMONT MINING CORP 1.25 07-15 cv 651639AH9 55,478 55,513,000 PRN   SOLE   55,513,000 0 0
NUANCE COMMUNICATIONS 2.75 11- cv 67020YAF7 4,884 5,000,000 PRN   SOLE   5,000,000 0 0
PEABODY ENERGY CORP 4.75 12-15 cv 704549AG9 38,527 48,730,000 PRN   SOLE   48,730,000 0 0
TIBCO SOFTWARE INC. 2.25 05-01 cv 88632QAB9 48,766 48,675,000 PRN   SOLE   48,675,000 0 0
ALEXANDRIA REAL ESTATE PFD cp 015271505 10,512 418,817 SH   SOLE   418,817 0 0
CHESAPEAKE ENERGY CONV PFD 5.7 cp 165167784 16,802 14,500 SH   SOLE   14,500 0 0
CHESAPEAKE ENERGY PFD CONV 5.0 cp 165167826 3,026 31,037 SH   SOLE   30,707 0 330
CLIFFS NATURAL CONV PFD 7.0% cp 18683K408 41,675 1,815,119 SH   SOLE   1,815,119 0 0
FELCOR LODGING TRUST INC SERIE cp 31430F200 4,199 173,171 SH   SOLE   173,171 0 0
HEALTH CARE REIT INC 6.50% SER cp 42217K601 9,419 183,750 SH   SOLE   183,750 0 0
NY COMMUNITY CAP TRUST PFD cp 64944P307 16,222 331,881 SH   SOLE   331,881 0 0