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  10154-0004

(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: 02/29/08

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of February 29, 2008  (Unaudited)** |
|----------------------|------------------------------------------|

 

 

**DWS Dreman Mid Cap Value Fund**

 

|   | **Shares**              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **Value ($)** |
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|        |
|   | **Common Stocks 92.6%** |  
**Consumer Discretionary 10.3%**

 
**Hotels Restaurants & Leisure 0.9%**

 
Royal Caribbean Cruises Ltd.  

 

23,600 

 

**826,236**

**Household Durables 2.4%**

 
Fortune Brands, Inc.  

 

19,950 

 

1,296,351 

Whirlpool Corp.  

 

9,650 

 

814,170 

 

**2,110,521**

**Leisure Equipment & Products 2.1%**

 
Mattel, Inc.  

 

95,350 

 

**1,842,162**

**Media 0.9%**

 
CBS Corp. "B"  

 

34,700 

 

**791,854**

 

 

 

 

**Specialty Retail 4.0%**

 
The Men's Wearhouse, Inc.  

 

57,250 

 

1,319,040 

The Sherwin-Williams Co.  

 

26,000 

 

1,346,280 

TJX Companies, Inc.  

 

27,250 

 

872,000 

 

**3,537,320**

**Consumer Staples 8.4%**

 
**Food & Staples Retailing 1.5%**

 
SUPERVALU, Inc.  

 

49,150 

 

**1,290,188**

**Food Products 6.0%**

 
Corn Products International, Inc.  

 

38,700 

 

1,420,677 

Hormel Foods Corp.  

 

35,900 

 

1,466,874 

Smithfield Foods, Inc.*  

 

32,850 

 

905,018 

The J.M. Smucker Co.  

 

28,850 

 

1,476,831 

 

**5,269,400**

**Tobacco 0.9%**

 
Loews Corp. - Carolina Group  

 

10,600 

 

**798,074**

**Energy 10.1%**

 
**Energy Equipment & Services 1.2%**

 
Superior Energy Services, Inc.*  

 

26,700 

 

**1,086,423**

**Oil, Gas & Consumable Fuels 8.9%**

 
Cameco Corp.  

 

35,350 

 

1,387,487 

Chesapeake Energy Corp.  

 

36,650 

 

1,657,313 

Cimarex Energy Co.  

 

18,150 

 

956,505 

Newfield Exploration Co.*  

 

27,700 

 

1,534,026 

Noble Energy  

 

18,050 

 

1,397,070 

Sunoco, Inc.  

 

14,000 

 

855,120 

 

**7,787,521**

**Financials 16.7%**

 
**Commercial Banks 4.7%**

 
Comerica, Inc.  

 

30,550 

 

1,107,132 

Huntington Bancshares, Inc.  

 

68,350 

 

835,237 

KeyCorp.  

 

38,150 

 

841,207 

Marshall & Ilsley Corp.  

 

59,249 

 

1,374,577 

 

**4,158,153**

**Diversified Financial Services 0.9%**

 
CIT Group, Inc.  

 

37,100 

 

**824,362**

**Insurance 7.6%**

 
Arch Capital Group Ltd.*  

 

19,700 

 

1,349,056 

Cincinnati Financial Corp.  

 

38,350 

 

1,425,469 

HCC Insurance Holdings, Inc.  

 

67,900 

 

1,633,674 

Nationwide Financial Services, Inc. "A"  

 

21,500 

 

886,875 

Protective Life Corp.  

 

35,450 

 

1,368,016 

 

**6,663,090**

**Real Estate Investment Trusts 3.5%**

 
Hospitality Properties Trust (REIT)  

 

46,150 

 

1,676,630 

Ventas, Inc. (REIT)  

 

34,250 

 

1,432,335 

 

**3,108,965**

**Health Care 9.8%**

 
**Health Care Equipment & Supplies 6.1%**

 
Beckman Coulter, Inc.  

 

12,800 

 

864,000 

Hillenbrand Industries, Inc.  

 

33,850 

 

1,776,109 

Kinetic Concepts, Inc.*  

 

28,100 

 

1,444,059 

 

 

 

 

The Cooper Companies, Inc.  

 

37,050 

 

1,266,740 

 

**5,350,908**

**Health Care Providers & Services 1.4%**

 
CIGNA Corp.  

 

28,500 

 

**1,270,530**

**Pharmaceuticals 2.3%**

 
Biovail Corp.  

 

85,850 

 

1,216,494 

Mylan, Inc.  

 

66,800 

 

790,912 

 

**2,007,406**

**Industrials 15.2%**

 
**Aerospace & Defense 5.5%**

 
Alliant Techsystems, Inc.*  

 

12,850 

 

1,348,479 

DRS Technologies, Inc.  

 

27,950 

 

1,567,716 

L-3 Communications Holdings, Inc.  

 

17,950 

 

1,907,905 

 

**4,824,100**

**Commercial Services & Supplies 1.8%**

 
R.R. Donnelley & Sons Co.  

 

50,250 

 

**1,599,458**

**Electrical Equipment 4.5%**

 
Cooper Industries Ltd. "A"  

 

29,350 

 

1,230,646 

General Cable Corp.*  

 

22,650 

 

1,397,958 

Hubbell, Inc. "B"  

 

29,350 

 

1,331,609 

 

**3,960,213**

**Machinery 2.5%**

 
Eaton Corp.  

 

10,550 

 

850,646 

Parker Hannifin Corp.  

 

21,225 

 

1,371,772 

 

**2,222,418**

**Trading Companies & Distributors 0.9%**

 
WESCO International, Inc.*  

 

19,500 

 

**780,000**

**Information Technology 5.8%**

 
**Computers & Peripherals 1.6%**

 
Seagate Technology  

 

63,400 

 

**1,367,538**

**Electronic Equipment & Instruments 2.5%**

 
Anixter International, Inc.*  

 

15,250 

 

997,198 

Arrow Electronics, Inc.*  

 

38,150 

 

1,244,071 

 

**2,241,269**

**Software 1.7%**

 
Check Point Software Technologies Ltd.*  

 

67,400 

 

**1,477,408**

**Materials 6.6%**

 
**Chemicals 3.2%**

 
CF Industries Holdings, Inc.  

 

12,000 

 

1,464,960 

PPG Industries, Inc.  

 

21,500 

 

1,332,570 

 

**2,797,530**

**Metals & Mining 2.4%**

 
Yamana Gold, Inc.  

 

120,900 

 

**2,174,991**

**Paper & Forest Products 1.0%**

 
International Paper Co.  

 

27,800 

 

**881,260**

**Telecommunication Services 1.6%**

 
**Diversified Telecommunication Services**

Windstream Corp.  

 

119,200 

 

**1,401,792**

 

 

 

 

**Utilities 8.1%**

 
**Electric Utilities 5.0%**

 
Edison International  

 

34,650 

 

1,711,710 

 
PPL Corp.  

 

34,950 

 

1,586,031 

 
Progress Energy, Inc.  

 

27,500 

 

1,152,525 

 
 
 

**4,450,266**

 
**Multi-Utilities 3.1%**

 
Ameren Corp.  

 

26,350 

 

1,125,145 

 
Integrys Energy Group, Inc.  

 

34,750 

 

1,596,068 

 
 
 

**2,721,213**

 
 
**Total Common Stocks** (Cost $87,003,648)

 

**81,622,569**

 
 

**Cash Equivalents 7.2%**

 
Cash Management QP Trust, 3.89%  (a)(Cost $6,322,623)

 

 

6,322,623

 

**6,322,623**

 
 

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

 

**Value ($)**

 
 
**Total Investment Portfolio** (Cost $93,326,271) †

99.8

 

**87,945,192**

 
**Other Assets and Liabilities, Net**

0.2

 

**216,460**

 
 
**Net Assets**

100.0

 

**88,161,652**

 
 

*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.*

*†*

*The cost for federal income tax purposes was $93,434,450.  At February 29, 2008, net unrealized depreciation for all securities based on tax cost was $5,489,258.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $5,432,337 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $10,921,595.*

 
***

*Non-income producing security.*

 
*(a)*

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

 
*REIT: Real Estate Investment Trust*

 
 

 

*The following is a summary of the inputs used as of February 29, 2008 in valuing the Fund’s assets carried at fair value:*

 

***Valuation Inputs*****

***Investments in  Securities at***

***Value*****

*Level 1 - Quoted Prices***

*$ 87,945,192***

*Level 2 - Other Significant***

*-***

*Observable Inputs***

*Level 3 - Significant***

*-***

*Unobservable Inputs***

***Total*****

***$ 87,945,192*****

 

*The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157"), effective December 1, 2007, which governs the application of generally accepted accounting principles that require fair value measurements of the Fund’s assets and liabilities.  Fair value is an estimate of  the price the Fund would receive upon selling a security in a timely transaction to an independent buyer in the principal or most advantageous market of the security. FAS 157 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherentin a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.*

 

 

*Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels as follows:*

 

 

**•**

*Level 1 – quoted prices in active markets for identical securities*

 

**•**

*Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)*

 

**•**

*Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)*

 

*For Level 1 inputs, the Fund uses unadjusted quoted prices in active markets for assets or liabilities with sufficient frequency and volume to provide pricing information as the most reliable evidence of fair value.  The Fund’s Level 2 valuation techniques include inputs other than quoted prices within Level 1 that are observable for an asset or liability, either directly or indirectly.  Level 2 observable inputs may include quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active in which there are few transactions, the prices are not current, or price quotations vary substantially over time or among market participants.  Inputs that are observable for the asset or liability in Level 2 include such factors as interest rates, yield curves, prepayment speeds, credit risk, and default rates forsimilar liabilities.  For Level 3 valuation techniques, the Fund uses unobservable inputs that reflect assumptions market participants would be expected to use in pricing the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available and are developed based on the best information available under the circumstances.  In developing unobservable inputs, market participant assumptions are used if they are reasonably available without undue cost and effort.*

 

*The Fund may record changes to valuations based on the amount that might reasonably be expected to receive for a security upon its current sale consistent with the fair value measurement objective.  Each determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another.  Examples of such factors may include, but are not limited to the type of the security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issue or of comparable companies, quotations or evaluated prices from broker-dealers and/or pricing services, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s financial statements, an evaluation of the forces that influence the issuer and themarket(s) in which the security is purchased and sold, and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination, and the movement of the market in which the security is normally traded.   Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value determined upon sale of those investments.*

 

**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 16, 2008

 

 

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 16, 2008

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        April 16, 2008

 

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