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 Large Cap Value Fund**

 

 

|   | **Shares**              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **Value ($)** |
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|        |
|   | **Common Stocks 98.1%** |  
**Consumer Discretionary 3.7%**

 
**Distributors 1.6%**

 
Genuine Parts Co. (a) 

 

639,861 

 

**18,005,689**

**Hotels Restaurants & Leisure 1.8%**

 
Carnival Corp. (Unit) (a) 

 

1,013,022 

 

**19,814,710**

**Textiles, Apparel & Luxury Goods 0.3%**

 
VF Corp.  

 

65,010 

 

**3,374,019**

**Consumer Staples 8.8%**

 
**Beverages 1.1%**

 
PepsiCo, Inc.  

 

244,079 

 

**11,749,963**

 

 

 

**Food & Staples Retailing 1.8%**

 
CVS Caremark Corp.  

 

753,546 

 

**19,396,274**

**Food Products 1.9%**

 
General Mills, Inc.  

 

213,356 

 

11,196,923 

Kraft Foods, Inc. "A" (a) 

 

424,626 

 

9,672,980 

 

**20,869,903**

**Tobacco 4.0%**

 
Altria Group, Inc.  

 

1,692,448 

 

26,131,397 

Philip Morris International, Inc.  

 

545,511 

 

18,258,254 

 

**44,389,651**

**Energy 20.2%**

 
**Energy Equipment & Services 8.6%**

 
ENSCO International, Inc. (a) 

 

485,255 

 

11,927,568 

Halliburton Co. (a) 

 

1,124,001 

 

18,332,456 

National-Oilwell Varco, Inc.*  

 

471,626 

 

12,606,563 

Noble Corp.  

 

244,127 

 

6,003,083 

Patterson-UTI Energy, Inc.  

 

652,323 

 

5,603,455 

Transocean Ltd.* (a) 

 

481,417 

 

28,774,294 

Weatherford International Ltd.*  

 

1,043,682 

 

11,136,087 

 

**94,383,506**

**Oil, Gas & Consumable Fuels 11.6%**

 
Chevron Corp.  

 

325,192 

 

19,742,406 

ConocoPhillips  

 

291,917 

 

10,903,100 

Devon Energy Corp.  

 

219,848 

 

9,600,762 

ExxonMobil Corp. (a) 

 

274,410 

 

18,632,439 

Marathon Oil Corp.  

 

749,271 

 

17,435,536 

Nexen, Inc.  

 

751,733 

 

10,269,706 

Noble Energy, Inc.  

 

341,214 

 

15,538,885 

Occidental Petroleum Corp. (a) 

 

192,726 

 

9,996,698 

Suncor Energy, Inc. (a) 

 

767,836 

 

15,969,927 

 

**128,089,459**

**Financials 11.8%**

 
**Capital Markets 1.4%**

 
Jefferies Group, Inc. (a) 

 

506,817 

 

5,012,420 

Raymond James Financial, Inc. (a) 

 

352,590 

 

4,922,156 

TD Ameritrade Holding Corp.* (a) 

 

507,979 

 

6,029,711 

 

**15,964,287**

**Commercial Banks 2.7%**

 
BB&T Corp. (a) 

 

387,672 

 

6,253,149 

Canadian Imperial Bank of Commerce (a) 

 

358,843 

 

12,171,102 

Wells Fargo & Co.  

 

907,657 

 

10,982,650 

 

**29,406,901**

**Diversified Financial Services 2.3%**

 
JPMorgan Chase & Co. (a) 

 

514,545 

 

11,757,354 

Moody's Corp.  

 

310,895 

 

5,580,565 

NYSE Euronext (a) 

 

452,974 

 

7,646,201 

 

**24,984,120**

**Insurance 5.0%**

 
ACE Ltd.  

 

347,129 

 

12,673,680 

Alleghany Corp.* (a) 

 

22,530 

 

5,917,054 

Aon Corp.  

 

318,296 

 

12,171,639 

Arthur J. Gallagher & Co.  

 

327,159 

 

5,192,013 

MetLife, Inc.  

 

225,150 

 

4,156,269 

 

 

 

PartnerRe Ltd. (a) 

 

97,538 

 

6,037,602 

Prudential Financial, Inc.  

 

218,385 

 

3,583,698 

The Travelers Companies, Inc.  

 

144,687 

 

5,230,435 

 

**54,962,390**

**Thrifts & Mortgage Finance 0.4%**

 
Capitol Federal Financial (a) 

 

135,066 

 

**5,001,494**

**Health Care 13.0%**

 
**Health Care Equipment & Supplies 2.9%**

 
Baxter International, Inc. (a) 

 

329,711 

 

16,785,587 

Becton, Dickinson & Co.  

 

245,086 

 

15,168,372 

 

**31,953,959**

**Health Care Providers & Services 2.4%**

 
Medco Health Solutions, Inc.* (a) 

 

348,656 

 

14,148,461 

WellPoint, Inc.*  

 

371,795 

 

12,611,286 

 

**26,759,747**

**Life Sciences Tools & Services 1.6%**

 
Thermo Fisher Scientific, Inc.* (a) 

 

482,019 

 

**17,478,009**

**Pharmaceuticals 6.1%**

 
Bristol-Myers Squibb Co.  

 

284,895 

 

5,244,917 

Merck & Co., Inc.  

 

425,102 

 

10,287,468 

Pfizer, Inc. (a) 

 

409,844 

 

5,045,180 

Teva Pharmaceutical Industries Ltd. (ADR) (a) 

 

561,353 

 

25,025,117 

Wyeth (a) 

 

527,254 

 

21,522,508 

 

**67,125,190**

**Industrials 8.4%**

 
**Aerospace & Defense 3.0%**

 
Honeywell International, Inc. (a) 

 

696,420 

 

18,684,949 

United Technologies Corp. (a) 

 

358,126 

 

14,622,284 

 

**33,307,233**

**Electrical Equipment 2.7%**

 
Emerson Electric Co. (a) 

 

774,722 

 

20,723,813 

Rockwell Automation, Inc. (a) 

 

433,668 

 

8,716,727 

 

**29,440,540**

**Industrial Conglomerates 0.5%**

 
Textron, Inc.  

 

1,000,000 

 

**5,650,000**

**Machinery 2.2%**

 
Dover Corp. (a) 

 

564,079 

 

14,068,130 

Parker Hannifin Corp. (a) 

 

294,272 

 

9,819,857 

 

**23,887,987**

**Information Technology 9.7%**

 
**Communications Equipment 2.0%**

 
Brocade Communications Systems, Inc.* (a) 

 

3,438,228 

 

9,558,274 

Nokia Oyj (ADR) (a) 

 

1,300,982 

 

12,177,191 

 

**21,735,465**

**Computers & Peripherals 0.6%**

 
EMC Corp.* (a) 

 

610,959 

 

**6,415,069**

**Semiconductors & Semiconductor Equipment 4.2%**

 
Altera Corp.  

 

220,000 

 

3,372,600 

Intel Corp. (a) 

 

1,375,381 

 

17,522,354 

Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)  

 

2,657,740 

 

20,039,360 

 

 

 

Texas Instruments, Inc. (a) 

 

400,000 

 

5,740,000 

 

**46,674,314**

**Software 2.9%**

 
Microsoft Corp. (a) 

 

1,309,431 

 

21,147,311 

Oracle Corp.*  

 

682,485 

 

10,605,817 

 

**31,753,128**

**Materials 6.5%**

 
**Chemicals 4.5%**

 
Air Products & Chemicals, Inc. (a) 

 

441,259 

 

20,408,228 

E.I. du Pont de Nemours & Co.  

 

533,730 

 

10,012,775 

Praxair, Inc. (a) 

 

335,241 

 

19,024,927 

 

**49,445,930**

**Containers & Packaging 1.3%**

 
Sonoco Products Co.  

 

763,189 

 

**14,706,652**

**Metals & Mining 0.7%**

 
Goldcorp, Inc.  

 

108,313 

 

3,132,412 

Kinross Gold Corp.  

 

285,000 

 

4,497,300 

 

**7,629,712**

**Telecommunication Services 4.7%**

 
**Diversified Telecommunication Services**

AT&T, Inc.  

 

1,038,935 

 

24,695,485 

BCE, Inc.  

 

666,191 

 

13,002,297 

Verizon Communications, Inc. (a) 

 

476,677 

 

13,599,595 

 

**51,297,377**

**Utilities 11.3%**

 
**Electric Utilities 8.7%**

 
Allegheny Energy, Inc. (a) 

 

618,439 

 

14,619,898 

Duke Energy Corp.  

 

1,348,818 

 

18,168,578 

Entergy Corp.  

 

143,294 

 

9,656,583 

Exelon Corp.  

 

168,097 

 

7,937,540 

FirstEnergy Corp.  

 

486,991 

 

20,726,337 

FPL Group, Inc. (a) 

 

372,278 

 

16,875,362 

Southern Co. (a) 

 

254,291 

 

7,707,560 

 

**95,691,858**

**Multi-Utilities 2.6%**

 
PG&E Corp. (a) 

 

741,132 

 

**28,326,065**

**Total Common Stocks** (Cost $1,418,426,331)

 

**1,079,670,601**

 

**Securities Lending Collateral 39.5%**

 
Daily Assets Fund Institutional, 1.05% (b) (c)(Cost $435,036,525)

 

 

435,036,525

 

**435,036,525**

 

**Cash Equivalents 2.2%**

 
Cash Management QP Trust, 0.85% (b)(Cost $24,588,980)

 

 

24,588,980

 

**24,588,980**

 

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

 

**Value ($)**

**Total Investment Portfolio** (Cost $1,878,051,836) †

139.8

 

**1,539,296,106**

**Other Assets and Liabilities, Net**(a)

(39.8)

 

**(438,370,860)**

**Net Assets**

100.0

 

**1,100,925,246**

*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 $1,913,260,794.  At February 28, 2009, net unrealized depreciation for all securities based on tax cost was $373,964,688.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $22,626,285 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $396,590,973.*

*(a)*

*All or a portion of these securities were on loan amounting to $415,886,613. In addition, included in other assets and liabilities, net is a pending sale, amounting to $2,033,071, that is also on loan. The value of all securities loaned at February 28, 2009 amounted to $417,919,684 which is 38.0% 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 

$           1,463,294,095   

Level 2 

76,002,011   

Level 3 

-   

**Total**

**$           1,539,296,106**

 

**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 Large 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 Large 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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