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 High Return Equity Fund**

 

 

|   | **Shares**               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **Value ($)** |
|--------|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|        |
|   | **Common Stocks 100.0%** |  
**Consumer Discretionary 10.6%**

 
**Hotels Restaurants & Leisure 1.2%**

 
Carnival Corp. (Unit) (a) 

 

1,452,340 

 

**28,407,770**

**Media 1.7%**

 
Walt Disney Co. (a) 

 

2,337,315 

 

**39,196,773**

**Specialty Retail 7.7%**

 
Lowe's Companies, Inc.  

 

3,984,870 

 

63,120,341 

Staples, Inc. (a) 

 

7,036,605 

 

112,233,849 

 

**175,354,190**

 

 

 

**Consumer Staples 8.0%**

 
**Tobacco**

Altria Group, Inc. (a) 

 

8,521,393 

 

131,570,308 

Philip Morris International, Inc.  

 

1,536,209 

 

51,416,915 

 

**182,987,223**

**Energy 30.0%**

 
**Oil, Gas & Consumable Fuels**

Anadarko Petroleum Corp. (a) 

 

3,158,684 

 

110,396,006 

Apache Corp. (a) 

 

1,634,560 

 

96,586,150 

Chesapeake Energy Corp. (a) 

 

3,869,446 

 

60,518,135 

Chevron Corp. (a) 

 

1,352,341 

 

82,100,622 

ConocoPhillips (a) 

 

3,801,896 

 

142,000,816 

Devon Energy Corp. (a) 

 

2,580,875 

 

112,706,811 

Occidental Petroleum Corp. (a) 

 

952,163 

 

49,388,695 

Valero Energy Corp. (a) 

 

1,715,470 

 

33,245,809 

 

**686,943,044**

**Financials 17.3%**

 
**Capital Markets 2.7%**

 
The Goldman Sachs Group, Inc.  

 

687,305 

 

**62,599,739**

**Commercial Banks 6.5%**

 
PNC Financial Services Group, Inc. (a) 

 

1,452,102 

 

39,700,469 

SunTrust Banks, Inc.  

 

1,336,230 

 

16,074,847 

US Bancorp. (a) 

 

2,975,645 

 

42,581,480 

Wells Fargo & Co. (a) 

 

4,211,380 

 

50,957,698 

 

**149,314,494**

**Consumer Finance 1.1%**

 
American Express Co. (a) 

 

2,003,663 

 

**24,164,176**

**Diversified Financial Services 4.4%**

 
Bank of America Corp. (a) 

 

9,633,932 

 

38,054,031 

Citigroup, Inc. (a) 

 

5,407,610 

 

8,111,415 

JPMorgan Chase & Co.  

 

2,343,074 

 

53,539,241 

 

**99,704,687**

**Insurance 2.6%**

 
Allstate Corp. (a) 

 

2,037,779 

 

34,295,821 

The Travelers Companies, Inc. (a) 

 

713,457 

 

25,791,470 

 

**60,087,291**

**Thrifts & Mortgage Finance 0.0%**

 
Washington Mutual, Inc.  

 

12,654,430 

 

**316,361**

**Health Care 15.5%**

 
**Health Care Equipment & Supplies 1.5%**

 
Zimmer Holdings, Inc.* (a) 

 

1,008,430 

 

**35,315,219**

**Health Care Providers & Services 6.6%**

 
Aetna, Inc. (a) 

 

2,058,921 

 

49,146,444 

UnitedHealth Group, Inc. (a) 

 

5,133,303 

 

100,869,404 

 

**150,015,848**

**Pharmaceuticals 7.4%**

 
Pfizer, Inc. (a) 

 

5,391,303 

 

66,366,940 

Wyeth  

 

2,533,216 

 

103,405,877 

 

**169,772,817**

**Industrials 11.2%**

 
**Aerospace & Defense 4.1%**

 
Northrop Grumman Corp.  

 

1,235,897 

 

46,173,112 

 

 

 

United Technologies Corp. (a) 

 

1,175,145 

 

47,981,170 

 

**94,154,282**

**Air Freight & Logistics 1.8%**

 
FedEx Corp. (a) 

 

940,582 

 

**40,642,548**

**Industrial Conglomerates 2.5%**

 
General Electric Co. (a) 

 

6,908,760 

 

**58,793,548**

**Machinery 2.8%**

 
Caterpillar, Inc. (a) 

 

1,274,559 

 

31,366,897 

Eaton Corp. (a) 

 

889,075 

 

32,140,061 

 

**63,506,958**

**Information Technology 1.4%**

 
**Communications Equipment 0.0%**

 
Nortel Networks Corp.*  

 

111,754 

 

**9,164**

**Software 1.4%**

 
Microsoft Corp. (a) 

 

2,008,119 

 

**32,431,122**

**Materials 3.9%**

 
**Metals & Mining**

BHP Billiton Ltd. (ADR) (a) 

 

1,574,250 

 

57,334,185 

Newmont Mining Corp. (a) 

 

782,831 

 

32,589,255 

 

**89,923,440**

**Telecommunication Services 2.1%**

 
**Diversified Telecommunication Services**

Verizon Communications, Inc. (a) 

 

1,634,800 

 

**46,640,844**

**Total Common Stocks** (Cost $3,364,925,060)

 

**2,290,281,538**

 

**Securities Lending Collateral 46.0%**

 
Daily Assets Fund Institutional, 1.05% (b) (c)(Cost $1,052,207,373)

 

 

1,052,207,373

 

**1,052,207,373**

 

 

 

 

 

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

 

**Value ($)**

**Total Investments Portfolio** (Cost $4,417,132,433) †

146.0

 

**3,342,488,911**

**Other Assets and Liabilities, Net**

(46.0)

 

**(1,052,413,741)**

**Net Assets**

100.0

 

**2,290,075,170**

*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 $4,428,700,083.  At February 28, 2009, net unrealized depreciation for all securities based on tax cost was $1,086,211,172.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $244,865,785 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $1,331,076,957.*

*(a)*

*All or a portion of these securities were on loan.  The value of all securities loaned at February 28, 2009 amounted to $991,672,162 which is 43.3% 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.*

*ADR: American Depositary Receipt*

 

***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 

$           3,342,488,911   

Level 2 

-   

Level 3 

-   

**Total**

**$            3,342,488,911**

 

**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 High Return Equity 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 High Return Equity 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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