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 11,259 403,987 SH   SOLE   366,526 0 37,461
ADTRAN INC cs 00738A106 549 22,500 SH   SOLE   22,500 0 0
ADVANCED ENERGY INDS INC cs 007973100 20,101 820,465 SH   SOLE   767,515 0 52,950
AFLAC INC. cs 001055102 17,336 275,000 SH   SOLE   275,000 0 0
ALCOA INC cs 013817101 410 31,830 SH   SOLE   31,650 0 180
ALLEGHENY TECHNOLOGIES INC. cs 01741R102 578 15,350 SH   SOLE   15,350 0 0
AVON PRODUCTS INC cs 054303102 5,839 398,847 SH   SOLE   398,847 0 0
BANK OF NY MELLON cs 064058100 705 19,965 SH   SOLE   19,710 0 255
BEBE STORES INC cs 075571109 16,516 2,698,620 SH   SOLE   2,430,775 0 267,845
CA INC cs 12673p105 14,867 480,060 SH   SOLE   434,680 0 45,380
CALLAWAY GOLF CO cs 131193104 24,833 2,429,813 SH   SOLE   2,231,108 0 198,705
CARNIVAL CORP cs 143658300 23,511 621,000 SH   SOLE   621,000 0 0
CEDAR REALTY TRUST INC cs 150602209 10,087 1,650,823 SH   SOLE   1,471,738 0 179,085
CHESAPEAKE ENERGY CORP cs 165167107 17,550 685,000 SH   SOLE   685,000 0 0
CHEVRON CORPORATION cs 166764100 541 4,550 SH   SOLE   3,725 0 825
CITY HOLDING CO cs 177835105 15,905 354,537 SH   SOLE   323,591 0 30,946
CLIFFS NATURAL RESOURCES INC cs 18683K101 21,401 1,046,000 SH   SOLE   1,046,000 0 0
CORNING INC cs 219350105 29,807 1,431,665 SH   SOLE   1,431,265 0 400
CROCS INC cs 227046109 17,507 1,122,235 SH   SOLE   1,058,560 0 63,675
CRYOLIFE INC COM cs 228903100 3,081 309,336 SH   SOLE   309,336 0 0
DEVON ENERGY CORPORATION cs 25179M103 15,980 238,760 SH   SOLE   238,660 0 100
DIAMOND OFFSHORE DRILLING cs 25271C102 351 7,200 SH   SOLE   7,200 0 0
DIANA SHIPPING INC cs y2066g104 18,944 1,580,010 SH   SOLE   1,445,880 0 134,130
DIME COMMUNITY BANCSHRS cs 253922108 19,844 1,168,652 SH   SOLE   1,081,556 0 87,096
DOUBLE EAGLE PETROLEUM cs 258570209 257 89,809 SH   SOLE   89,809 0 0
ENCORE WIRE CORP cs 292562105 16,263 335,259 SH   SOLE   308,014 0 27,245
ENNIS INC cs 293389102 40,066 2,417,962 SH   SOLE   2,345,755 0 72,207
EVOLUTION PETROLEUM CORP cs 30049a107 8,032 630,916 SH   SOLE   565,766 0 65,150
EXELON CORPORATION cs 30161n101 27,165 809,440 SH   SOLE   809,210 0 230
FELCOR LODGING TRUST INC cs 31430F101 5,637 623,606 SH   SOLE   623,606 0 0
FIRSTENERGY CORP cs 337932107 27,049 794,860 SH   SOLE   794,675 0 185
FLIR SYSTEMS INC cs 302445101 26,878 746,625 SH   SOLE   746,625 0 0
FREIGHTCAR AMERICA cs 357023100 17,257 742,570 SH   SOLE   681,050 0 61,520
GAP INC cs 364760108 275 6,875 SH   SOLE   6,875 0 0
GENESCO INC cs 371532102 392 5,260 SH   SOLE   5,260 0 0
GLAXOSMITHKLINE cs 37733w105 19,140 358,223 SH   SOLE   336,358 0 21,865
GRAHAM CORP cs 384556106 16,296 511,651 SH   SOLE   475,076 0 36,575
GRANITE CONST INC cs 387328107 21,849 547,173 SH   SOLE   509,955 0 37,218
GULF ISLAND FABRICATION cs 402307102 12,016 556,035 SH   SOLE   525,737 0 30,298
HALLADOR ENERGY CO cs 40609P105 5,369 627,974 SH   SOLE   590,914 0 37,060
HALLMARK FINL SVCS INC cs 40624q203 14,247 1,714,488 SH   SOLE   1,565,829 0 148,659
HARMAN INTERNATIONAL cs 413086109 5,655 53,150 SH   SOLE   28,900 0 24,250
HARTFORD FINANCIAL SVCS GRP cs 416515104 16,577 470,000 SH   SOLE   470,000 0 0
HELMERICH & PAYNE cs 423452101 616 5,725 SH   SOLE   5,725 0 0
HEWLETT-PACKARD COMPANY cs 428236103 250 7,740 SH   SOLE   7,740 0 0
HOOKER FURNITURE CORP cs 439038100 13,676 873,281 SH   SOLE   766,851 0 106,430
HOUSTON WIRE AND CABLE cs 44244k109 14,983 1,141,117 SH   SOLE   1,049,257 0 91,860
HUNTINGTON BANCSHARES INC. cs 446150104 22,183 2,225,000 SH   SOLE   2,225,000 0 0
INTEL CORP cs 458140100 26,031 1,008,567 SH   SOLE   949,647 0 58,920
INTREPID POTASH cs 46121Y102 17,235 1,114,831 SH   SOLE   1,015,506 0 99,325
ITRON INC cs 465741106 389 10,950 SH   SOLE   10,950 0 0
JACOBS ENGINEERING GROUP, INC cs 469814107 667 10,500 SH   SOLE   10,500 0 0
JOY GLOBAL INC cs 481165108 24,302 419,000 SH   SOLE   419,000 0 0
JPMORGAN CHASE & CO cs 46625h100 17,641 290,582 SH   SOLE   265,932 0 24,650
KMG INC cs 482564101 14,588 930,343 SH   SOLE   869,709 0 60,634
KNOLL INC cs 498904200 16,474 905,667 SH   SOLE   846,959 0 58,708
LANDEC CORP cs 514766104 14,541 1,302,985 SH   SOLE   1,207,320 0 95,665
LEAPFROG ENTERPRISES cs 52186n106 14,183 1,891,055 SH   SOLE   1,750,025 0 141,030
MACK CALI REALTY CORP cs 554489104 24,260 1,166,895 SH   SOLE   1,166,620 0 275
MCGRATH RENTCORP cs 580589109 17,622 504,064 SH   SOLE   465,994 0 38,070
MERCURY SYSTEMS INC cs 589378108 12,640 956,863 SH   SOLE   872,313 0 84,550
METHODE ELECTRNCS INC cs 591520200 38,135 1,243,819 SH   SOLE   1,202,917 0 40,902
MICREL INC cs 594793101 18,928 1,708,300 SH   SOLE   1,586,000 0 122,300
MICROSOFT CORP cs 594918104 23,973 584,854 SH   SOLE   584,570 0 284
MODUSLINK GLOBAL SOLUTIONS cs 60786L107 2,299 543,595 SH   SOLE   494,335 0 49,260
MOSAIC CO cs 61945c103 16,526 330,525 SH   SOLE   330,525 0 0
MYRIAD GENETICS INC cs 62855j104 24,497 716,500 SH   SOLE   661,745 0 54,755
NEWELL RUBBERMAID INC cs 651229106 17,043 570,000 SH   SOLE   570,000 0 0
NEWPARK RESOURCES INC cs 651718504 17,517 1,529,904 SH   SOLE   1,416,889 0 113,015
NUCOR CORP cs 670346105 560 11,085 SH   SOLE   11,085 0 0
OLYMPIC STEEL INC cs 68162k106 16,084 560,410 SH   SOLE   508,410 0 52,000
OSIRIS THERAPEUTICS INC cs 68827R108 454 34,600 SH   SOLE   34,600 0 0
PC-TEL INC cs 69325Q105 15,047 1,723,585 SH   SOLE   1,723,585 0 0
PEABODY ENERGY CORP cs 704549104 19,118 1,170,000 SH   SOLE   1,170,000 0 0
PITNEY BOWES INC cs 724479100 29,259 1,125,795 SH   SOLE   1,042,150 0 83,645
PLEXUS CORP cs 729132100 10,885 271,650 SH   SOLE   250,175 0 21,475
PPL CORP cs 69351T106 15,321 462,320 SH   SOLE   462,135 0 185
RELIANCE STEEL & ALUMINUM cs 759509102 304 4,300 SH   SOLE   4,300 0 0
ROCKY BRANDS INC cs 774515100 2,703 187,847 SH   SOLE   187,847 0 0
RUDOLPH TECHNOLOGIES INC cs 781270103 16,020 1,403,990 SH   SOLE   1,263,076 0 140,914
RUTH'S HOSPITALITY GROUP INC cs 783332109 14,777 1,222,225 SH   SOLE   1,086,855 0 135,370
SCANSOURCE INC cs 806037107 15,330 376,005 SH   SOLE   344,535 0 31,470
SILICON IMAGE INC cs 82705T102 15,755 2,283,288 SH   SOLE   2,038,623 0 244,665
SPARTAN MOTORS INC cs 846819100 14,441 2,809,615 SH   SOLE   2,604,740 0 204,875
STILLWATER MINING CO cs 86074Q102 20,330 1,372,710 SH   SOLE   1,263,170 0 109,540
SUNCOR ENERGY INC cs 867224107 12,954 370,550 SH   SOLE   370,550 0 0
SUPERIOR INDUSTRIES cs 868168105 7,245 353,568 SH   SOLE   353,568 0 0
SYMANTEC CORP cs 871503108 14,219 712,000 SH   SOLE   712,000 0 0
SYNAPTICS INC cs 87157d109 23,432 390,410 SH   SOLE   357,810 0 32,600
TESSERA TECHNOLOGIES INC cs 88164L100 14,465 612,126 SH   SOLE   612,126 0 0
THOR INDUSTRIES INC cs 885160101 383 6,270 SH   SOLE   6,270 0 0
TIDEWATER INC cs 886423102 13,665 281,065 SH   SOLE   280,755 0 310
UNISYS CORP cs 909214306 21,979 721,562 SH   SOLE   672,127 0 49,435
UNUM GROUP cs 91529y106 4,593 130,080 SH   SOLE   78,735 0 51,345
US ECOLOGY INC cs 91732j102 28,882 778,077 SH   SOLE   742,307 0 35,770
VAALCO ENERGY INC cs 91851c201 21,435 2,507,064 SH   SOLE   2,324,766 0 182,298
VONAGE HOLDINGS CORP cs 92886t201 19,448 4,554,500 SH   SOLE   4,079,275 0 475,225
WARREN RESOURCES INC cs 93564A100 3,697 770,111 SH   SOLE   743,536 0 26,575
WELLS FARGO & CO cs 949746101 759 15,265 SH   SOLE   15,265 0 0
WESTMORELAND COAL CO cs 960878106 825 27,693 SH   SOLE   27,693 0 0
WINNEBAGO INDUSTRIES cs 974637100 9,178 335,101 SH   SOLE   306,271 0 28,830
XEROX CORP cs 984121103 8,771 776,200 SH   SOLE   776,200 0 0
CHESAPEAKE ENERGY 2.75 11-15-3 cv 165167BW6 13,544 13,000,000 PRN   SOLE   13,000,000 0 0
INTERDIGITAL INC. 2.50 03-15-1 cv 458660AB3 9,850 9,500,000 PRN   SOLE   9,500,000 0 0
NAVISTAR INTL CORP 3.0 10-15-1 cv 63934EAL2 59,783 58,863,000 PRN   SOLE   58,863,000 0 0
NEWMONT MINING CORP 1.25 07-15 cv 651639AH9 63,592 63,513,000 PRN   SOLE   63,513,000 0 0
NUANCE COMMUNICATIONS 2.75 11- cv 67020YAF7 50,595 50,500,000 PRN   SOLE   50,500,000 0 0
PEABODY ENERGY CORP 4.75 12-15 cv 704549AG9 40,300 49,830,000 PRN   SOLE   49,830,000 0 0
TIBCO SOFTWARE INC. 2.25 05-01 cv 88632QAB9 59,938 59,714,000 PRN   SOLE   59,714,000 0 0
ALEXANDRIA REAL ESTATE PFD cp 015271505 11,254 418,817 SH   SOLE   418,817 0 0
CHESAPEAKE ENERGY CONV PFD 5.7 cp 165167784 11,181 10,000 SH   SOLE   10,000 0 0
CHESAPEAKE ENERGY PFD CONV 5.0 cp 165167826 3,912 40,378 SH   SOLE   40,048 0 330
CLIFFS NATURAL CONV PFD 7.0% cp 18683K408 48,520 2,340,572 SH   SOLE   2,340,572 0 0
FELCOR LODGING TRUST INC SERIE cp 31430F200 11,952 480,791 SH   SOLE   480,791 0 0
HEALTH CARE REIT INC 6.50% SER cp 42217K601 19,102 343,996 SH   SOLE   343,996 0 0
NY COMMUNITY CAP TRUST PFD cp 64944P307 16,205 332,753 SH   SOLE   332,753 0 0