UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

**FORM N-Q**

**QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED**

**MANAGEMENT INVESTMENT COMPANY**

**_______________________________**

Investment Company Act file number  811-5385

DWS Value Series, Inc.

(Exact name of registrant as specified in charter)

 

345 Park Avenue

New York, NY  10154

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY  10154-0004

(Name and address of agent for service)

Registrant's telephone number, including area code:  (212) 454-7190

Date of fiscal year end:  11/30

Date of reporting period: 2/28/09

 

ITEM 1.  SCHEDULE OF INVESTMENTS

| Investment Portfolio | **as of February 28, 2009  (Unaudited)** |
|----------------------|------------------------------------------|

 

 

**DWS Dreman Mid Cap Value Fund**

 

 

|   | **Shares**              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **Value ($)** |
|--------|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|        |
|   | **Common Stocks 99.4%** |  
**Consumer Discretionary 10.3%**

 
**Auto Components 1.3%**

 
Autoliv, Inc.  

 

99,400 

 

**1,479,072**

**Household Durables 2.1%**

 
Fortune Brands, Inc.  

 

64,050 

 

1,521,187 

Whirlpool Corp. (a) 

 

44,950 

 

999,239 

 

**2,520,426**

**Leisure Equipment & Products 1.8%**

 
Mattel, Inc.  

 

174,150 

 

**2,061,936**

**Specialty Retail 5.1%**

 
Best Buy Co., Inc.  

 

51,200 

 

1,475,584 

Staples, Inc.  

 

78,100 

 

1,245,695 

 

 

 

The Men's Wearhouse, Inc. (a) 

 

138,550 

 

1,479,714 

TJX Companies, Inc.  

 

80,950 

 

1,802,756 

 

**6,003,749**

**Consumer Staples 8.3%**

 
**Food & Staples Retailing 1.8%**

 
SUPERVALU, Inc.  

 

133,350 

 

**2,081,594**

**Food Products 3.0%**

 
Corn Products International, Inc.  

 

50,600 

 

1,020,602 

H.J. Heinz Co.  

 

75,300 

 

2,460,051 

 

**3,480,653**

**Household Products 1.0%**

 
Energizer Holdings, Inc.*  

 

28,400 

 

**1,198,196**

**Tobacco 2.5%**

 
Lorillard, Inc.  

 

50,700 

 

**2,962,908**

**Energy 8.5%**

 
**Energy Equipment & Services 2.0%**

 
Baker Hughes, Inc.  

 

47,200 

 

1,383,432 

BJ Services Co.  

 

97,800 

 

945,726 

 

**2,329,158**

**Oil, Gas & Consumable Fuels 6.5%**

 
Cameco Corp.  

 

105,250 

 

1,534,545 

Chesapeake Energy Corp.  

 

139,300 

 

2,178,652 

Cimarex Energy Co.  

 

62,450 

 

1,227,142 

Newfield Exploration Co.*  

 

84,300 

 

1,629,519 

Noble Energy, Inc.  

 

24,650 

 

1,122,561 

 

**7,692,419**

**Financials 16.4%**

 
**Capital Markets 1.8%**

 
Ameriprise Financial, Inc.  

 

135,800 

 

**2,164,652**

**Commercial Banks 2.6%**

 
Comerica, Inc. (a) 

 

65,750 

 

986,908 

Marshall & Ilsley Corp. (a) 

 

196,849 

 

901,568 

SunTrust Banks, Inc.  

 

93,800 

 

1,128,414 

 

**3,016,890**

**Insurance 8.1%**

 
Allstate Corp.  

 

104,600 

 

1,760,418 

Cincinnati Financial Corp.  

 

96,450 

 

1,981,083 

HCC Insurance Holdings, Inc.  

 

110,800 

 

2,432,060 

RenaissanceRe Holdings Ltd.  

 

72,413 

 

3,260,757 

 

**9,434,318**

**Real Estate Investment Trusts 3.9%**

 
Annaly Capital Management, Inc. (REIT)  

 

133,700 

 

1,858,430 

Hospitality Properties Trust (REIT)  

 

71,350 

 

813,390 

Ventas, Inc. (REIT)  

 

87,250 

 

1,881,983 

 

**4,553,803**

**Health Care 10.0%**

 
**Biotechnology 1.2%**

 
Biogen Idec, Inc.*  

 

30,300 

 

**1,395,012**

**Health Care Equipment & Supplies 4.3%**

 
Kinetic Concepts, Inc.* (a) 

 

76,800 

 

1,672,704 

 

 

 

The Cooper Companies, Inc. (a) 

 

106,250 

 

2,336,438 

Zimmer Holdings, Inc.*  

 

28,200 

 

987,564 

 

**4,996,706**

**Pharmaceuticals 4.5%**

 
Biovail Corp.  

 

260,650 

 

2,749,857 

Mylan, Inc.* (a) 

 

206,900 

 

2,571,767 

 

**5,321,624**

**Industrials 15.9%**

 
**Aerospace & Defense 5.1%**

 
Alliant Techsystems, Inc.* (a) 

 

36,350 

 

2,568,491 

L-3 Communications Holdings, Inc.  

 

33,750 

 

2,283,187 

Northrop Grumman Corp.  

 

31,300 

 

1,169,368 

 

**6,021,046**

**Commercial Services & Supplies 1.1%**

 
R.R. Donnelley & Sons Co.  

 

163,150 

 

**1,270,939**

**Electrical Equipment 5.3%**

 
Cooper Industries Ltd. "A"  

 

103,850 

 

2,190,196 

General Cable Corp.* (a) 

 

88,650 

 

1,367,870 

Hubbell, Inc. "B"  

 

102,050 

 

2,685,956 

 

**6,244,022**

**Machinery 3.3%**

 
Eaton Corp.  

 

39,850 

 

1,440,578 

Parker Hannifin Corp.  

 

72,425 

 

2,416,822 

 

**3,857,400**

**Trading Companies & Distributors 1.1%**

 
WESCO International, Inc.*  

 

78,400 

 

**1,301,440**

**Information Technology 8.3%**

 
**Electronic Equipment, Instruments & Components 3.2%**

 
Anixter International, Inc.* (a) 

 

51,350 

 

1,510,204 

Arrow Electronics, Inc.*  

 

133,050 

 

2,212,621 

 

**3,722,825**

**IT Services 1.5%**

 
Affiliated Computer Services, Inc. "A"*  

 

38,600 

 

**1,799,918**

**Semiconductors & Semiconductor Equipment 1.2%**

 
Xilinx, Inc.  

 

83,100 

 

**1,469,208**

**Software 2.4%**

 
Check Point Software Technologies Ltd.*  

 

125,900 

 

**2,766,023**

**Materials 7.1%**

 
**Chemicals 2.8%**

 
CF Industries Holdings, Inc.  

 

17,800 

 

1,145,074 

PPG Industries, Inc.  

 

68,900 

 

2,140,034 

 

**3,285,108**

**Metals & Mining 3.9%**

 
Freeport-McMoRan Copper & Gold, Inc.  

 

42,400 

 

1,289,808 

Yamana Gold, Inc.  

 

370,900 

 

3,211,994 

 

**4,501,802**

**Paper & Forest Products 0.4%**

 
International Paper Co.  

 

84,200 

 

**479,098**

 

 

 

**Telecommunication Services 2.5%**

 
**Diversified Telecommunication Services**

Windstream Corp.  

 

391,100 

 

**2,917,606**

**Utilities 12.1%**

 
**Electric Utilities 8.4%**

 
American Electric Power Co., Inc.  

 

83,900 

 

2,353,395 

Edison International  

 

115,550 

 

3,145,271 

PPL Corp.  

 

41,950 

 

1,169,985 

Progress Energy, Inc.  

 

90,300 

 

3,198,426 

 

**9,867,077**

**Multi-Utilities 3.7%**

 
Ameren Corp.  

 

96,950 

 

2,305,471 

Integrys Energy Group, Inc.  

 

85,650 

 

2,059,883 

 

**4,365,354**

**Total Common Stocks** (Cost $195,035,610)

 

**116,561,982**

 

**Securities Lending Collateral 10.8%**

 
Daily Assets Fund Institutional, 1.05% (b) (c)(Cost $12,615,090)

 

 

12,615,090

 

**12,615,090**

 

**Cash Equivalents 0.6%**

 
Cash Management QP Trust, 0.85% (b)(Cost $752,220)

 

 

752,220

 

**752,220**

 

**% of****Net Assets**

 

**Value ($)**

**Total Investment Portfolio** (Cost $208,402,920) †

110.8

 

**129,929,292**

**Other Assets and Liabilities, Net**

(10.8)

 

**(12,678,155)**

**Net Assets**

100.0

 

**117,251,137**

*For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.*

***

*Non-income producing security.*

*†*

*The cost for federal income tax purposes was $208,683,094.  At February 28, 2009, net unrealized depreciation for all securities based on tax cost was $78,753,802.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $569,133 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $79,322,935.*

*(a)*

*All or a portion of these securities were on loan. The value of all securities loaned at February 28, 2009 amounted to $11,958,429 which is 10.2% of net assets.*

*(b)*

*Affiliated fund managed by Deutsche Investment Management Americas Inc.  The rate shown is the annualized seven-day yield at period end.*

*(c)*

*Represents collateral held in connection with securities lending.  Income earned by the Fund is net of borrower rebates.*

*REIT: Real Estate Investment Trust*

 

***Fair Value Measurements***

 

*Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements,” establishes a three-tier hierarchy for measuring fair value and requires additional disclosure about the classification of fair value measurements.*

*Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.*

 

*The following is a summary of the inputs used as of February 28, 2009 in valuing the Fund's investments. Please see below for information on the Fund’s policy regarding valuation inputs, and their aggregate levels used in the table below:*

 

**Valuation Inputs**

**Investments in  Securities**

Level 1 

$               125,965,078   

Level 2 

3,964,214   

Level 3 

-   

**Total**

**$                129,929,292**

 

**ITEM 2.**

**CONTROLS AND PROCEDURES**

 

 

 

(a)          The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

 

 

 

(b)         There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.

 

 

**ITEM 3.**

**EXHIBITS**

 

 

 

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

 

 

**SIGNATURES**

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Registrant: 

DWS Dreman Mid Cap Value Fund, a series of DWS Value Series, Inc.

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

April 22, 2009

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Registrant: 

DWS Dreman Mid Cap Value Fund, a series of DWS Value Series, Inc.

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

April 22, 2009

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        April 22, 2009

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