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 Large Cap Value Fund**

 

|   | **Shares**              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **Value ($)** |
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|        |
|   | **Common Stocks 92.3%** |  
**Consumer Discretionary 3.7%**

 
**Distributors 0.2%**

 
Genuine Parts Co.  

 

70,000 

 

**2,887,500**

**Hotels Restaurants & Leisure 1.3%**

 
McDonald's Corp.  

 

411,035 

 

**22,241,104**

**Household Durables 0.3%**

 
Centex Corp.  

 

209,885 

 

**4,657,348**

**Media 1.3%**

 
Gannett Co., Inc.  

 

733,653 

 

**22,119,638**

**Specialty Retail 0.6%**

 
Office Depot, Inc.*  

 

864,714 

 

**9,831,798**

 

 

 

 

**Consumer Staples 8.4%**

 
**Food & Staples Retailing 2.1%**

 
CVS Caremark Corp.  

 

872,021 

 

**35,212,208**

**Food Products 3.0%**

 
General Mills, Inc.  

 

476,697 

 

26,690,265 

Kraft Foods, Inc. "A"  

 

731,537 

 

22,802,008 

 

**49,492,273**

**Tobacco 3.3%**

 
Altria Group, Inc.  

 

479,606 

 

35,078,383 

Reynolds American, Inc. (a) 

 

329,525 

 

20,997,333 

 

**56,075,716**

**Energy 25.9%**

 
**Energy Equipment & Services 6.5%**

 
Baker Hughes, Inc.  

 

260,201 

 

17,508,925 

ENSCO International, Inc.  

 

349,829 

 

20,933,767 

Halliburton Co.  

 

1,093,426 

 

41,878,216 

Noble Corp.  

 

584,918 

 

28,748,720 

 

**109,069,628**

**Oil, Gas & Consumable Fuels 19.4%**

 
Cameco Corp. (a) 

 

602,337 

 

23,641,727 

Chevron Corp.  

 

205,596 

 

17,816,949 

ConocoPhillips  

 

357,856 

 

29,598,270 

Devon Energy Corp.  

 

407,154 

 

41,822,859 

ExxonMobil Corp.  

 

398,032 

 

34,632,764 

Hess Corp.  

 

230,479 

 

21,476,033 

Marathon Oil Corp.  

 

533,256 

 

28,347,889 

Nexen, Inc.  

 

665,506 

 

20,750,477 

Noble Energy, Inc. 

 

521,509 

 

40,364,797 

Occidental Petroleum Corp.  

 

339,488 

 

26,266,187 

Suncor Energy, Inc.  

 

405,163 

 

41,812,822 

 

**326,530,774**

**Financials 12.2%**

 
**Capital Markets 1.4%**

 
Bank of New York Mellon Corp.  

 

537,999 

 

**23,602,016**

**Commercial Banks 1.9%**

 
Canadian Imperial Bank of Commerce (a) 

 

237,000 

 

16,068,600 

US Bancorp.  

 

271,949 

 

8,707,807 

Zions Bancorp.  

 

154,677 

 

7,385,827 

 

**32,162,234**

**Diversified Financial Services 1.3%**

 
CIT Group, Inc.  

 

279,053 

 

6,200,558 

JPMorgan Chase & Co.  

 

354,875 

 

14,425,669 

 

**20,626,227**

**Insurance 7.6%**

 
Aflac, Inc.  

 

276,361 

 

17,247,690 

Allstate Corp.  

 

645,317 

 

30,800,980 

Genworth Financial, Inc. "A"  

 

826,271 

 

19,152,962 

Hartford Financial Services Group, Inc.  

 

223,403 

 

15,615,870 

Loews Corp.  

 

663,842 

 

27,775,149 

MetLife, Inc. (a) 

 

297,347 

 

17,323,436 

 

**127,916,087**

 

 

 

 

**Health Care 9.6%**

 
**Biotechnology 1.0%**

 
Amgen, Inc.*  

 

349,172 

 

**15,894,309**

**Health Care Equipment & Supplies 2.1%**

 
Baxter International, Inc.  

 

591,339 

 

**34,900,828**

**Life Sciences Tools & Services 1.2%**

 
Thermo Fisher Scientific, Inc.*  

 

369,600 

 

**20,671,728**

**Pharmaceuticals 5.3%**

 
Abbott Laboratories  

 

328,172 

 

17,573,611 

Merck & Co., Inc.  

 

304,626 

 

13,494,932 

Pfizer, Inc.  

 

913,594 

 

20,354,874 

Teva Pharmaceutical Industries Ltd. (ADR)  

 

366,700 

 

17,993,969 

Wyeth  

 

466,781 

 

20,360,987 

 

**89,778,373**

**Industrials 6.6%**

 
**Aerospace & Defense 4.4%**

 
Honeywell International, Inc.  

 

517,925 

 

29,801,404 

Raytheon Co.  

 

336,592 

 

21,824,625 

United Technologies Corp.  

 

314,862 

 

22,200,920 

 

**73,826,949**

**Machinery 2.2%**

 
Danaher Corp.  

 

210,000 

 

15,571,500 

Dover Corp.  

 

499,299 

 

20,725,902 

 

**36,297,402**

**Information Technology 4.0%**

 
**Computers & Peripherals 1.4%**

 
Brocade Communications Systems, Inc.*  

 

3,043,734 

 

**23,406,314**

**Semiconductors & Semiconductor Equipment 1.3%**

 
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)  

 

2,340,935 

 

**22,800,707**

**Software 1.3%**

 
Microsoft Corp.  

 

794,255 

 

**21,619,621**

**Materials 5.0%**

 
**Chemicals 3.8%**

 
Air Products & Chemicals, Inc.  

 

317,980 

 

29,041,114 

Dow Chemical Co.  

 

474,632 

 

17,888,880 

Praxair, Inc.  

 

216,357 

 

17,369,140 

 

**64,299,134**

**Containers & Packaging 1.2%**

 
Sonoco Products Co.  

 

675,572 

 

**19,030,863**

**Telecommunication Services 5.2%**

 
**Diversified Telecommunication Services**

AT&T, Inc.  

 

1,111,211 

 

38,703,479 

BCE, Inc. (a) 

 

876,226 

 

31,719,381 

Verizon Communications, Inc.  

 

468,919 

 

17,031,138 

 

**87,453,998**

**Utilities 11.7%**

 
**Electric Utilities 9.8%**

 
Allegheny Energy, Inc.  

 

547,531 

 

27,743,396 

Duke Energy Corp.  

 

1,194,093 

 

20,944,391 

 

 

 

 

Entergy Corp.  

 

207,140 

 

21,281,564 

 
Exelon Corp.  

 

515,607 

 

38,593,184 

 
FirstEnergy Corp.  

 

431,110 

 

29,138,725 

 
FPL Group, Inc.  

 

466,271 

 

28,111,478 

 
 
 

**165,812,738**

 
**Multi-Utilities 1.9%**

 
PG&E Corp.  

 

839,860 

 

**31,629,128**

 
 
**Total Common Stocks** (Cost $1,428,553,024)

 

**1,549,846,643**

 
 

**Securities Lending Collateral 2.8%**

 
Daily Assets Fund Institutional, 3.69%  (b) (c)(Cost $48,052,200)

 

 

48,052,200

 

**48,052,200**

 
 

**Cash Equivalents 8.0%**

 
Cash Management QP Trust, 3.89% (b)(Cost $134,450,083)

 

 

134,450,083

 

**134,450,083**

 
 

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

 

**Value ($)**

 
 
**Total Investment Portfolio** (Cost $1,611,055,307) †

103.1

 

**1,732,348,926**

 
**Other Assets and Liabilities, Net**

(3.1)

 

**(52,721,133)**

 
 
**Net Assets**

100.0

 

**1,679,627,793**

 
 

*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 $1,612,076,512.  At February 29, 2008, net unrealized appreciation for all securities based on tax cost was $120,272,414.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $187,277,094 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $67,004,680.*

 
***

*Non-income producing security.*

 
*(a)*

*All or a portion of these securities were on loan.  The value of all securities loaned at February 29, 2008 amounted to $45,870,205 which is 2.7% 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*

 
 

 

*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***

*$ 1,732,348,926***

*Level 2 - Other Significant***

*-***

*Observable Inputs***

*Level 3 - Significant***

*-***

*Unobservable Inputs***

***Total*****

***$ 1,732,348,926*****

 

 

*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 inherent in 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 inthe 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 Large 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 Large 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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