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 6,015 353,608 SH   SOLE   323,211 0 30,397
ACCO BRANDS CORP cs 00081T108 552 80,000 SH   SOLE   80,000 0 0
ADTRAN INC cs 00738A106 544 26,500 SH   SOLE   26,500 0 0
ADVANCED ENERGY INDS INC cs 007973100 15,166 807,147 SH   SOLE   754,312 0 52,835
AFLAC INC. cs 001055102 13,397 230,000 SH   SOLE   230,000 0 0
ALCOA INC cs 013817101 512 31,830 SH   SOLE   31,650 0 180
ALLEGHENY TECHNOLOGIES INC. cs 01741R102 384 10,350 SH   SOLE   10,350 0 0
ASSURED GUARANTY LTD cs G0585R106 461 20,800 SH   SOLE   20,800 0 0
AVON PRODUCTS INC cs 054303102 7,073 561,347 SH   SOLE   561,347 0 0
BANK OF NY MELLON cs 064058100 773 19,965 SH   SOLE   19,710 0 255
BEBE STORES INC cs 075571109 8,143 3,510,034 SH   SOLE   3,250,089 0 259,945
BROCADE COMMUNICATIONS SYS cs 111621306 23,351 2,148,252 SH   SOLE   2,148,252 0 0
CA INC cs 12673p105 23,422 838,300 SH   SOLE   793,680 0 44,620
CALLAWAY GOLF CO cs 131193104 17,488 2,415,418 SH   SOLE   2,220,253 0 195,165
CARNIVAL CORP cs 143658300 29,886 744,000 SH   SOLE   744,000 0 0
CEDAR REALTY TRUST INC cs 150602209 15,124 2,563,403 SH   SOLE   2,327,083 0 236,320
CHESAPEAKE ENERGY CORP cs 165167107 18,806 818,000 SH   SOLE   818,000 0 0
CHEVRON CORPORATION cs 166764100 543 4,550 SH   SOLE   3,725 0 825
CHRISTOPHER & BANKS CORP cs 171046105 1,348 136,339 SH   SOLE   133,139 0 3,200
CLIFFS NATURAL RESOURCES INC cs 18683K101 21,383 2,060,000 SH   SOLE   2,060,000 0 0
CORNING INC cs 219350105 21,287 1,100,665 SH   SOLE   1,100,265 0 400
CROCS INC cs 227046109 13,204 1,049,630 SH   SOLE   984,045 0 65,585
CRYOLIFE INC COM cs 228903100 11,827 1,198,278 SH   SOLE   1,198,278 0 0
DELTIC TIMBER CORP cs 247850100 13,151 211,019 SH   SOLE   187,984 0 23,035
DEVON ENERGY CORPORATION cs 25179M103 17,506 256,760 SH   SOLE   256,660 0 100
DIANA SHIPPING INC cs y2066g104 14,603 1,633,475 SH   SOLE   1,501,650 0 131,825
DIME COMMUNITY BANCSHRS cs 253922108 15,256 1,059,454 SH   SOLE   974,658 0 84,796
ENCORE WIRE CORP cs 292562105 10,841 292,297 SH   SOLE   266,162 0 26,135
ENNIS INC cs 293389102 38,643 2,934,206 SH   SOLE   2,864,069 0 70,137
ESCALERA RES CO cs 296064108 171 89,809 SH   SOLE   89,809 0 0
EXELON CORPORATION cs 30161n101 29,366 861,440 SH   SOLE   861,210 0 230
FIRSTENERGY CORP cs 337932107 29,765 886,660 SH   SOLE   886,475 0 185
FLIR SYSTEMS INC cs 302445101 23,462 748,625 SH   SOLE   748,625 0 0
FREIGHTCAR AMERICA cs 357023100 21,540 646,851 SH   SOLE   587,446 0 59,405
FUEL TECH INC cs 359523107 64 15,000 SH   SOLE   15,000 0 0
GAP INC cs 364760108 287 6,875 SH   SOLE   6,875 0 0
GLAXOSMITHKLINE cs 37733w105 16,468 358,228 SH   SOLE   337,303 0 20,925
GOLD RESOURCE CORPORATION cs 38068T105 12,318 2,405,858 SH   SOLE   2,405,858 0 0
GRAHAM CORP cs 384556106 11,335 394,244 SH   SOLE   362,174 0 32,070
GRANITE CONST INC cs 387328107 17,052 536,048 SH   SOLE   499,305 0 36,743
GULF ISLAND FABRICATION cs 402307102 9,291 540,152 SH   SOLE   511,104 0 29,048
HALLADOR ENERGY CO cs 40609P105 10,241 864,935 SH   SOLE   750,595 0 114,340
HALLMARK FINL SVCS INC cs 40624q203 17,653 1,712,238 SH   SOLE   1,564,554 0 147,684
HARMAN INTERNATIONAL cs 413086109 5,019 51,194 SH   SOLE   28,429 0 22,765
HARTFORD FINANCIAL SVCS GRP cs 416515104 27,453 737,000 SH   SOLE   737,000 0 0
HELMERICH & PAYNE cs 423452101 374 3,825 SH   SOLE   3,825 0 0
HEWLETT-PACKARD COMPANY cs 428236103 275 7,740 SH   SOLE   7,740 0 0
HOOKER FURNITURE CORP cs 439038100 12,824 843,154 SH   SOLE   738,109 0 105,045
HOUSTON WIRE AND CABLE cs 44244k109 5,612 468,478 SH   SOLE   468,478 0 0
HUNTINGTON BANCSHARES INC. cs 446150104 23,595 2,425,000 SH   SOLE   2,425,000 0 0
INTEL CORP cs 458140100 28,459 817,317 SH   SOLE   760,072 0 57,245
INTREPID POTASH cs 46121Y102 17,134 1,109,006 SH   SOLE   1,011,606 0 97,400
ITRON INC cs 465741106 576 14,650 SH   SOLE   14,650 0 0
JACOBS ENGINEERING GROUP, INC cs 469814107 513 10,500 SH   SOLE   10,500 0 0
JOY GLOBAL INC cs 481165108 25,552 468,500 SH   SOLE   468,500 0 0
JPMORGAN CHASE & CO cs 46625h100 3,652 60,628 SH   SOLE   36,803 0 23,825
KMG INC cs 482564101 16,486 1,012,652 SH   SOLE   951,418 0 61,234
KNOLL INC cs 498904200 15,337 886,003 SH   SOLE   828,845 0 57,158
LANDEC CORP cs 514766104 16,467 1,344,210 SH   SOLE   1,251,545 0 92,665
LEAPFROG ENTERPRISES cs 52186n106 11,528 1,924,510 SH   SOLE   1,786,300 0 138,210
MACK CALI REALTY CORP cs 554489104 25,810 1,350,599 SH   SOLE   1,350,324 0 275
MCGRATH RENTCORP cs 580589109 15,498 453,158 SH   SOLE   415,918 0 37,240
MERCURY SYSTEMS INC cs 589378108 10,607 963,403 SH   SOLE   881,713 0 81,690
METHODE ELECTRNCS INC cs 591520200 43,946 1,191,919 SH   SOLE   1,152,667 0 39,252
MICREL INC cs 594793101 17,254 1,434,215 SH   SOLE   1,315,475 0 118,740
MICROSOFT CORP cs 594918104 22,478 484,854 SH   SOLE   484,570 0 284
MODUSLINK GLOBAL SOLUTIONS cs 60786L107 2,858 800,591 SH   SOLE   775,181 0 25,410
MOSAIC CO cs 61945c103 14,057 316,525 SH   SOLE   316,525 0 0
MYRIAD GENETICS INC cs 62855j104 24,303 630,090 SH   SOLE   575,945 0 54,145
NEWELL RUBBERMAID INC cs 651229106 20,646 600,000 SH   SOLE   600,000 0 0
NEWPARK RESOURCES INC cs 651718504 17,612 1,415,724 SH   SOLE   1,305,914 0 109,810
NUCOR CORP cs 670346105 602 11,085 SH   SOLE   11,085 0 0
OLYMPIC STEEL INC cs 68162k106 13,272 645,217 SH   SOLE   594,637 0 50,580
OSIRIS THERAPEUTICS INC cs 68827R108 436 34,600 SH   SOLE   34,600 0 0
PC-TEL INC cs 69325Q105 14,924 1,966,327 SH   SOLE   1,966,327 0 0
PEABODY ENERGY CORP cs 704549104 26,753 2,161,025 SH   SOLE   2,069,575 0 91,450
PITNEY BOWES INC cs 724479100 24,685 987,780 SH   SOLE   909,245 0 78,535
PLEXUS CORP cs 729132100 9,280 251,295 SH   SOLE   230,995 0 20,300
PPL CORP cs 69351T106 27,044 823,520 SH   SOLE   823,335 0 185
QUEST DIAGNOSTICS INC cs 74834L100 28,256 465,655 SH   SOLE   465,655 0 0
RELIANCE STEEL & ALUMINUM cs 759509102 294 4,300 SH   SOLE   4,300 0 0
ROCKY BRANDS INC cs 774515100 2,833 201,073 SH   SOLE   201,073 0 0
RUDOLPH TECHNOLOGIES INC cs 781270103 11,944 1,319,750 SH   SOLE   1,185,761 0 133,989
RUTH'S HOSPITALITY GROUP INC cs 783332109 7,228 654,696 SH   SOLE   594,901 0 59,795
SCANSOURCE INC cs 806037107 12,422 359,115 SH   SOLE   328,755 0 30,360
SILICON IMAGE INC cs 82705T102 13,802 2,738,428 SH   SOLE   2,499,023 0 239,405
SONY CORP ADR cs 835699307 27,276 1,512,000 SH   SOLE   1,512,000 0 0
SPARTAN MOTORS INC cs 846819100 11,099 2,376,674 SH   SOLE   2,236,609 0 140,065
STILLWATER MINING CO cs 86074Q102 17,003 1,131,300 SH   SOLE   1,025,945 0 105,355
SUNCOR ENERGY INC cs 867224107 562 15,550 SH   SOLE   15,550 0 0
SUPERIOR INDUSTRIES cs 868168105 25,696 1,465,806 SH   SOLE   1,465,806 0 0
SYMANTEC CORP cs 871503108 20,383 867,000 SH   SOLE   867,000 0 0
SYNAPTICS INC cs 87157d109 11,863 162,059 SH   SOLE   146,019 0 16,040
TESSERA TECHNOLOGIES INC cs 88164L100 27,176 1,022,432 SH   SOLE   1,022,432 0 0
THOR INDUSTRIES INC cs 885160101 323 6,270 SH   SOLE   6,270 0 0
TIDEWATER INC cs 886423102 3,802 97,424 SH   SOLE   97,114 0 310
UNISYS CORP cs 909214306 17,662 754,447 SH   SOLE   705,507 0 48,940
UNUM GROUP cs 91529y106 1,732 50,390 SH   SOLE   29,835 0 20,555
US ECOLOGY INC cs 91732j102 9,524 203,689 SH   SOLE   185,784 0 17,905
VAALCO ENERGY INC cs 91851c201 21,268 2,502,084 SH   SOLE   2,318,921 0 183,163
VONAGE HOLDINGS CORP cs 92886t201 15,491 4,722,750 SH   SOLE   4,254,525 0 468,225
WARREN RESOURCES INC cs 93564A100 9,012 1,700,377 SH   SOLE   1,454,207 0 246,170
WELLS FARGO & CO cs 949746101 615 11,865 SH   SOLE   11,865 0 0
WESTMORELAND COAL CO cs 960878106 898 24,000 SH   SOLE   24,000 0 0
WINNEBAGO INDUSTRIES cs 974637100 7,260 333,466 SH   SOLE   305,936 0 27,530
CHESAPEAKE ENERGY 2.75 11-15-3 cv 165167BW6 13,162 13,000,000 PRN   SOLE   13,000,000 0 0
INTERDIGITAL INC. 2.50 03-15-1 cv 458660AB3 9,101 8,890,000 PRN   SOLE   8,890,000 0 0
NAVISTAR INTL CORP 3.0 10-15-1 cv 63934EAL2 61,747 61,863,000 PRN   SOLE   61,863,000 0 0
NUANCE COMMUNICATIONS 2.75 11- cv 67020YAF7 63,097 63,977,000 PRN   SOLE   63,977,000 0 0
OWENS-BROCKWAY 3.00 06-01-15 cv 69073TAQ6 46,503 46,214,000 PRN   SOLE   46,214,000 0 0
PEABODY ENERGY CORP 4.75 12-15 cv 704549AG9 39,668 57,910,000 PRN   SOLE   57,910,000 0 0
TIBCO SOFTWARE INC. 2.25 05-01 cv 88632QAB9 59,751 59,714,000 PRN   SOLE   59,714,000 0 0
ALEXANDRIA REAL ESTATE PFD cp 015271505 11,300 418,817 SH   SOLE   418,817 0 0
CHESAPEAKE ENERGY PFD CONV 5.0 cp 165167826 7,956 81,185 SH   SOLE   80,855 0 330
CLIFFS NATURAL CONV PFD 7.0% cp 18683K408 36,637 3,271,176 SH   SOLE   3,271,176 0 0
FELCOR LODGING TRUST INC SERIE cp 31430F200 16,635 644,510 SH   SOLE   644,510 0 0
HEALTH CARE REIT INC 6.50% SER cp 42217K601 7,616 133,196 SH   SOLE   133,196 0 0
NY COMMUNITY CAP TRUST PFD cp 64944P307 15,952 332,753 SH   SOLE   332,753 0 0