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 Small Cap Value Fund**

 

|   | **Shares**              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Value ($)** |
|--------|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|        |
|   | **Common Stocks 94.7%** |  
**Consumer Discretionary 3.9%**

 
**Diversified Consumer Services 0.6%**

 
Regis Corp.  

 

433,450 

 

**10,857,923**

**Household Durables 0.6%**

 
Helen of Troy Ltd.* (a) 

 

739,500 

 

**11,676,705**

**Leisure Equipment & Products 0.5%**

 
Callaway Golf Co.  

 

631,500 

 

**9,624,060**

**Specialty Retail 0.9%**

 
Conn's, Inc.* (a) 

 

338,850 

 

4,320,337 

The Men's Wearhouse, Inc.  

 

478,500 

 

11,024,640 

 

**15,344,977**

 

 

 

 

**Textiles, Apparel & Luxury Goods 1.3%**

 
Phillips-Van Heusen Corp.  

 

340,764 

 

12,441,294 

Wolverine World Wide, Inc.  

 

396,900 

 

10,517,850 

 

**22,959,144**

**Consumer Staples 7.8%**

 
**Food & Staples Retailing 2.7%**

 
Nash Finch Co. (a) 

 

370,200 

 

12,982,914 

Ruddick Corp.  

 

678,900 

 

21,894,525 

Weis Markets, Inc.  

 

460,400 

 

14,921,564 

 

**49,799,003**

**Food Products 4.0%**

 
Del Monte Foods Co.  

 

1,575,300 

 

14,146,194 

Pilgrim's Pride Corp.  

 

437,700 

 

10,268,442 

Ralcorp Holdings, Inc.*  

 

406,650 

 

22,548,743 

The J.M. Smucker Co.  

 

500,150 

 

25,602,678 

 

**72,566,057**

**Tobacco 1.1%**

 
Vector Group Ltd.  

 

1,110,707 

 

**20,414,795**

**Energy 12.5%**

 
**Energy Equipment & Services 6.9%**

 
Atwood Oceanics, Inc.*  

 

170,450 

 

15,867,190 

Bristow Group, Inc.* (a) 

 

165,250 

 

8,718,590 

Helix Energy Solutions Group, Inc.*  

 

551,850 

 

19,436,157 

Hercules Offshore, Inc.* (a) 

 

866,152 

 

21,948,292 

Key Energy Services, Inc.*  

 

790,700 

 

10,682,357 

Matrix Service Co.* (a) 

 

252,950 

 

5,145,003 

NATCO Group, Inc. "A"* (a) 

 

117,400 

 

5,594,110 

Oil States International, Inc.* (a) 

 

313,600 

 

13,221,376 

RPC, Inc. (a) 

 

1,066,300 

 

14,043,171 

Superior Energy Services, Inc.*  

 

278,900 

 

11,348,441 

 

**126,004,687**

**Oil, Gas & Consumable Fuels 5.6%**

 
Arena Resources, Inc.*  

 

320,100 

 

12,957,648 

Parallel Petroleum Corp.* (a) 

 

1,535,950 

 

28,384,356 

Petrohawk Energy Corp.* (a) 

 

1,280,500 

 

23,151,440 

PetroQuest Energy, Inc.* (a) 

 

1,352,574 

 

21,316,566 

Pinnacle Gas Resources, Inc. 144A*  

 

459,000 

 

1,629,450 

Uranium Resources, Inc.* (a) 

 

1,611,446 

 

15,276,508 

 

**102,715,968**

**Financials 15.0%**

 
**Capital Markets 0.8%**

 
FBR Capital Markets Corp. 144A*  

 

204,400 

 

1,428,756 

MCG Capital Corp.  

 

258,650 

 

3,103,800 

Waddell & Reed Financial, Inc. "A"  

 

331,250 

 

10,381,375 

 

**14,913,931**

**Commercial Banks 2.3%**

 
AmericanWest Bancorp.  

 

364,000 

 

3,214,120 

Citizens Republic Bancorp., Inc. (a) 

 

797,050 

 

8,871,166 

Columbia Banking System, Inc.  

 

499,600 

 

11,535,764 

MB Financial, Inc. (a) 

 

164,550 

 

4,734,104 

Sterling Financial Corp. (a) 

 

233,857 

 

3,482,131 

UCBH Holdings, Inc. (a) 

 

802,200 

 

9,056,838 

 

**40,894,123**

 

 

 

 

**Diversified Financial Services 0.0%**

 
CMET Finance Holdings, Inc. 144A*  

 

10,800 

 

**129,600**

**Insurance 10.8%**

 
Allied World Assurance Co. Holdings Ltd.  

 

328,850 

 

14,321,417 

Amerisafe, Inc.*  

 

632,350 

 

8,315,403 

Argo Group International Holdings Ltd.*  

 

382,794 

 

14,324,151 

CastlePoint Holdings Ltd.  

 

70,600 

 

891,678 

CastlePoint Holdings Ltd. 144A*  

 

343,900 

 

4,343,457 

Endurance Specialty Holdings Ltd.  

 

503,200 

 

19,775,760 

Hanover Insurance Group, Inc.  

 

401,500 

 

17,541,535 

Hilb Rogal & Hobbs Co.  

 

255,500 

 

7,823,410 

IPC Holdings Ltd. (a) 

 

591,400 

 

16,038,768 

Odyssey Re Holdings Corp.  

 

567,650 

 

20,537,577 

Platinum Underwriters Holdings Ltd.  

 

438,950 

 

15,143,775 

Selective Insurance Group, Inc.  

 

481,000 

 

11,428,560 

StanCorp Financial Group, Inc.  

 

300,300 

 

14,741,727 

Tower Group, Inc.  

 

467,700 

 

13,287,357 

United Fire & Casualty Co.  

 

536,800 

 

18,439,080 

 

**196,953,655**

**Real Estate Investment Trusts 1.1%**

 
Ashford Hospitality Trust (REIT)  

 

1,456,800 

 

9,687,720 

CapLease, Inc. (REIT) (a) 

 

1,244,050 

 

10,263,413 

 

**19,951,133**

**Health Care 8.9%**

 
**Health Care Equipment & Supplies 1.5%**

 
Kinetic Concepts, Inc.*  

 

263,000 

 

13,515,570 

The Cooper Companies, Inc.  

 

382,150 

 

13,065,708 

 

**26,581,278**

**Health Care Providers & Services 5.4%**

 
Amedisys, Inc.* (a) 

 

518,161 

 

22,166,928 

Apria Healthcare Group, Inc.*  

 

572,000 

 

12,418,120 

Centene Corp.* (a) 

 

564,100 

 

10,108,672 

Healthspring, Inc.*  

 

1,096,250 

 

19,239,187 

Kindred Healthcare, Inc.*  

 

352,300 

 

7,430,007 

LifePoint Hospitals, Inc.*  

 

776,300 

 

19,454,078 

Odyssey HealthCare, Inc.*  

 

864,800 

 

7,558,352 

 

**98,375,344**

**Life Sciences Tools & Services 1.2%**

 
Charles River Laboratories International, Inc.*  

 

182,150 

 

10,670,347 

PerkinElmer, Inc.  

 

482,250 

 

11,969,445 

 

**22,639,792**

**Pharmaceuticals 0.8%**

 
Perrigo Co.  

 

458,300 

 

**15,316,386**

**Industrials 19.6%**

 
**Aerospace & Defense 2.6%**

 
CAE, Inc.  

 

1,372,050 

 

17,246,669 

DRS Technologies, Inc.  

 

420,900 

 

23,608,281 

Triumph Group, Inc. (a) 

 

112,400 

 

6,360,716 

 

**47,215,666**

**Air Freight & Logistics 0.3%**

 
ABX Air, Inc.*  

 

1,452,550 

 

**4,444,803**

 

 

 

 

**Commercial Services & Supplies 3.5%**

 
Administaff, Inc. (a) 

 

354,750 

 

8,748,135 

American Ecology Corp. (a) 

 

404,750 

 

10,082,323 

Deluxe Corp.  

 

421,100 

 

8,771,513 

Ennis, Inc.  

 

743,500 

 

11,866,260 

HNI Corp. (a) 

 

411,300 

 

12,158,028 

Kelly Services, Inc. "A"  

 

601,750 

 

11,559,617 

 

**63,185,876**

**Construction & Engineering 4.7%**

 
Chicago Bridge & Iron Co. NV (New York Shares)  

 

210,150 

 

9,776,178 

EMCOR Group, Inc.*  

 

951,700 

 

22,926,453 

Granite Construction, Inc.  

 

314,250 

 

9,487,208 

Northwest Pipe Co.*  

 

203,750 

 

8,504,525 

Sterling Construction Co., Inc.* (b) 

 

649,050 

 

13,052,395 

URS Corp.*  

 

551,300 

 

22,206,364 

 

**85,953,123**

**Electrical Equipment 3.5%**

 
General Cable Corp.* (a) 

 

190,700 

 

11,770,004 

Hubbell, Inc. "B"  

 

396,750 

 

18,000,547 

Regal-Beloit Corp.  

 

414,650 

 

15,308,878 

Superior Essex, Inc.*  

 

427,250 

 

12,125,355 

Thomas & Betts Corp.*  

 

162,250 

 

6,514,338 

 

**63,719,122**

**Industrial Conglomerates 0.6%**

 
Walter Industries, Inc.  

 

214,400 

 

**11,712,672**

**Machinery 3.0%**

 
Gardner Denver, Inc.*  

 

399,200 

 

14,734,472 

Harsco Corp.  

 

292,350 

 

16,514,851 

Mueller Water Products, Inc. "A"  

 

769,550 

 

6,202,573 

Mueller Water Products, Inc. "B"  

 

340,846 

 

2,968,769 

Watts Water Technologies, Inc. "A" (a) 

 

508,500 

 

14,095,620 

 

**54,516,285**

**Road & Rail 0.9%**

 
Genesee & Wyoming, Inc.*  

 

553,350 

 

**17,153,850**

**Trading Companies & Distributors 0.5%**

 
WESCO International, Inc.*  

 

213,100 

 

**8,524,000**

**Information Technology 11.5%**

 
**Communications Equipment 2.4%**

 
Arris Group, Inc.* (a) 

 

1,356,200 

 

7,798,150 

Black Box Corp.  

 

588,000 

 

18,228,000 

CommScope, Inc.*  

 

412,700 

 

17,283,876 

 

**43,310,026**

**Computers & Peripherals 1.4%**

 
Avid Technology, Inc.* (a) 

 

370,800 

 

9,036,396 

STEC, Inc.* (a) 

 

2,177,050 

 

15,848,924 

 

**24,885,320**

**Electronic Equipment & Instruments 4.1%**

 
Anixter International, Inc.*  

 

448,000 

 

29,294,720 

Mettler-Toledo International, Inc.*  

 

190,500 

 

18,611,850 

Park Electrochemical Corp.  

 

580,182 

 

13,663,286 

Scansource, Inc.* (a) 

 

409,750 

 

13,919,208 

 

**75,489,064**

**IT Services 0.9%**

 
CACI International, Inc. "A"*  

 

359,050 

 

**15,676,123**

 

 

 

 

**Semiconductors & Semiconductor Equipment 0.7%**

 
MKS Instruments, Inc.*  

 

644,800 

 

**12,954,032**

**Software 2.0%**

 
Jack Henry & Associates, Inc.  

 

861,900 

 

20,280,507 

Sybase, Inc.*  

 

636,150 

 

16,934,313 

 

**37,214,820**

**Materials 8.5%**

 
**Chemicals 2.1%**

 
CF Industries Holdings, Inc.  

 

76,050 

 

9,284,184 

Hercules, Inc.  

 

729,200 

 

13,358,944 

OM Group, Inc.*  

 

261,000 

 

15,798,330 

 

**38,441,458**

**Construction Materials 0.7%**

 
Headwaters, Inc.* (a) 

 

396,450 

 

4,860,477 

Texas Industries, Inc. (a) 

 

137,850 

 

7,940,160 

 

**12,800,637**

**Metals & Mining 5.7%**

 
Century Aluminum Co.*  

 

259,100 

 

17,134,283 

IAMGOLD Corp.  

 

2,014,250 

 

16,295,282 

Metal Management, Inc.  

 

125,200 

 

7,595,884 

Pan American Silver Corp.* (a) 

 

749,450 

 

29,978,000 

RTI International Metals, Inc.*  

 

506,200 

 

27,775,194 

Worthington Industries, Inc. (a) 

 

233,200 

 

4,101,988 

 

**102,880,631**

**Telecommunication Services 1.6%**

 
**Diversified Telecommunication Services**

Alaska Communications Systems Group, Inc. (a) 

 

1,201,300 

 

13,610,729 

Iowa Telecommunications Services, Inc.  

 

977,600 

 

15,475,408 

 

**29,086,137**

**Utilities 5.4%**

 
**Electric Utilities 1.9%**

 
ALLETE, Inc.  

 

406,550 

 

14,652,062 

IDACORP, Inc. (a) 

 

489,950 

 

14,600,510 

Sierra Pacific Resources  

 

451,150 

 

5,824,346 

 

**35,076,918**

**Gas Utilities 2.2%**

 
Southern Union Co. (a) 

 

843,900 

 

21,705,108 

Suburban Propane Partners, LP (a) 

 

435,350 

 

17,875,471 

 

**39,580,579**

**Multi-Utilities 1.3%**

 
CMS Energy Corp. (a) 

 

231,250 

 

3,327,688 

Integrys Energy Group, Inc.  

 

337,250 

 

15,489,892 

TECO Energy, Inc.  

 

357,250 

 

5,351,605 

 

**24,169,185**

**Total Common Stocks** (Cost $1,691,813,011)

 

**1,725,708,888**

 

**Closed End Investment Companies 1.4%**

 
Apollo Investment Corp.  

 

944,500 

 

14,639,750 

Tortoise Energy Infrastructure Corp. (a) 

 

345,857 

 

10,991,336 

**Total Closed End Investment Companies** (Cost $28,381,716)

 

**25,631,086**

 

 

 

 

 

**Securities Lending Collateral 9.1%**

 
Daily Assets Fund Institutional, 3.69%  (c) (d)(Cost $166,543,620)

 

 

166,543,620

 

**166,543,620**

 
 

**Cash Equivalents 3.9%**

 
Cash Management QP Trust, 3.89%  (c)(Cost $70,480,813)

 

 

70,480,813

 

**70,480,813**

 
 

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

 

**Value ($)**

 
 
**Total Investment Portfolio** (Cost $1,957,219,160) †

109.1

 

**1,988,364,407**

 
**Other Assets and Liabilities, Net**

(9.1)

 

**(165,390,204)**

 
 
**Net Assets**

100.0

 

**1,822,974,203**

 
 

*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 $1,959,225,799.  At February 29, 2008, net unrealized appreciation for all securities based on tax cost was $29,138,608.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $271,501,094 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $242,362,486.*

 
***

*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 $154,193,267 which is 8.5% of net assets.*

 
*(b)*

*Affiliated issuer.  An Affiliate issuer includes any company in which the Fund has ownership of at least 5% of the outstanding voting securities.  A summary of the Fund’s transactions during the three months ended February 29, 2008 with companies which are or were affiliates is as follows:*

 

 
 
***Affiliate*****

***Value ($) at***

***11/30/2007*****

***Purchase***

***Cost ($)*****

***Sales***

***Cost ($)*****

***Realized***

***Gain/Loss***

***($)*****

***Dividend***

***Income***

***($)*****

***Shares at***

***2/29/2008*****

***Value ($) at 2/29/2008*****

 
*Sterling Construction*

*Co., Inc.***

*14,745,878***

*829,484***

*-***

*-***

*-***

*649,050***

*13,052,395***

*(c)*

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

 
*(d)*

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

 
*144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.*

 
*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

$ 1,988,234,807

Level 2 - Other Significant

-   

Observable Inputs

Level 3 - Significant

129,600   

Unobservable Inputs

**Total**

**$ 1,988,364,407**

 

 

*The following is a reconciliation of the Fund’s assets in which significant unobservable inputs (Level 3) were used in determining fair value at February 29, 2008:*

 

 

 

 

 

**Investments in**

**Securities at**

**Market Value**

**Balance as of December 1, 2007**

**$ 129,600**

Total realized gains or losses

**-**

Change in unrealized appreciation (depreciation)

**-**

Net purchases (sales)

**-**

Net transfers in (out) of Level 3 

**-**

**Balance as of February 29, 2008**

**$ 129,600**

 

*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 thecircumstances.  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 Small 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 Small 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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