UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

**FORM N-Q**

**QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED**

**MANAGEMENT INVESTMENT COMPANY**

**_______________________________**

Investment Company Act file number  811-5385

DWS Value Series, Inc.

(Exact name of registrant as specified in charter)

 

345 Park Avenue

New York, NY  10154

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY  10154-0004

(Name and address of agent for service)

Registrant's telephone number, including area code:  (212) 454-7190

Date of fiscal year end:  11/30

Date of reporting period: 2/28/09

 

ITEM 1.  SCHEDULE OF INVESTMENTS

| Investment Portfolio | **as of February 28, 2009  (Unaudited)** |
|----------------------|------------------------------------------|

 

 

**DWS Dreman Small Cap Value Fund**

 

 

|   | **Shares**              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **Value ($)** |
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|        |
|   | **Common Stocks 95.4%** |  
**Consumer Discretionary 8.6%**

 
**Diversified Consumer Services 0.9%**

 
Regis Corp.  

 

757,850 

 

**9,548,910**

**Hotels Restaurants & Leisure 1.6%**

 
Brinker International, Inc.  

 

483,700 

 

5,320,700 

International Speedway Corp. "A"  

 

648,800 

 

12,541,304 

 

**17,862,004**

**Household Durables 0.8%**

 
Helen of Troy Ltd.*  

 

887,000 

 

**8,905,480**

**Media 1.0%**

 
DreamWorks Animation SKG, Inc. "A"*  

 

582,700 

 

**11,240,283**

 

 

 

**Specialty Retail 2.6%**

 
Aaron Rents, Inc. (a) 

 

607,100 

 

14,588,613 

Penske Automotive Group, Inc. (a) 

 

1,643,300 

 

9,301,078 

The Men's Wearhouse, Inc. (a) 

 

526,700 

 

5,625,156 

 

**29,514,847**

**Textiles, Apparel & Luxury Goods 1.7%**

 
Hanesbrands, Inc.* (a) 

 

1,172,600 

 

8,208,200 

Wolverine World Wide, Inc. (a) 

 

746,300 

 

11,313,908 

 

**19,522,108**

**Consumer Staples 10.7%**

 
**Beverages 0.6%**

 
Central European Distribution Corp.* (a) 

 

954,100 

 

**6,363,847**

**Food & Staples Retailing 3.1%**

 
Nash Finch Co. (a) 

 

337,200 

 

11,748,048 

Ruddick Corp. (a) 

 

634,400 

 

13,753,792 

Weis Markets, Inc.  

 

353,811 

 

9,818,255 

 

**35,320,095**

**Food Products 5.1%**

 
Corn Products International, Inc.  

 

496,500 

 

10,014,405 

Del Monte Foods Co.  

 

2,455,600 

 

17,557,540 

Ralcorp Holdings, Inc.*  

 

242,550 

 

14,698,530 

The J.M. Smucker Co.  

 

403,250 

 

14,968,640 

 

**57,239,115**

**Tobacco 1.9%**

 
Universal Corp. (a) 

 

396,100 

 

11,383,914 

Vector Group Ltd. (a) 

 

825,202 

 

10,240,757 

 

**21,624,671**

**Energy 7.8%**

 
**Energy Equipment & Services 3.5%**

 
Atwood Oceanics, Inc.*  

 

513,800 

 

7,850,864 

Bristow Group, Inc.* (a) 

 

528,100 

 

10,694,025 

Oil States International, Inc.*  

 

752,100 

 

10,017,972 

Superior Energy Services, Inc.*  

 

829,600 

 

10,942,424 

 

**39,505,285**

**Oil, Gas & Consumable Fuels 4.3%**

 
Arch Coal, Inc.  

 

763,600 

 

10,614,040 

Forest Oil Corp.* (a) 

 

791,017 

 

11,216,621 

Parallel Petroleum Corp.* (a) 

 

711,950 

 

861,459 

PetroQuest Energy, Inc.* (a) 

 

1,356,274 

 

4,394,328 

St. Mary Land & Exploration Co.  

 

736,300 

 

9,998,954 

Stone Energy Corp.*  

 

110,575 

 

437,877 

Whiting Petroleum Corp.*  

 

459,200 

 

10,699,360 

 

**48,222,639**

**Financials 22.0%**

 
**Capital Markets 0.9%**

 
Waddell & Reed Financial, Inc. "A"  

 

719,118 

 

**10,153,946**

**Commercial Banks 5.5%**

 
Associated Banc-Corp. (a) 

 

757,800 

 

10,957,788 

FirstMerit Corp. (a) 

 

666,000 

 

9,796,860 

MB Financial, Inc. (a) 

 

561,250 

 

7,285,025 

Prosperity Bancshares, Inc. (a) 

 

531,000 

 

13,551,120 

 

 

 

TCF Financial Corp. (a) 

 

1,059,200 

 

12,985,792 

Zions Bancorp. (a) 

 

823,500 

 

7,716,195 

 

**62,292,780**

**Diversified Financial Services 1.3%**

 
Financial Federal Corp. (a) 

 

762,100 

 

**14,479,900**

**Insurance 13.5%**

 
Allied World Assurance Co. Holdings Ltd.  

 

419,045 

 

16,095,519 

Argo Group International Holdings Ltd.*  

 

446,794 

 

12,657,674 

Aspen Insurance Holdings Ltd.  

 

700,400 

 

15,261,716 

Endurance Specialty Holdings Ltd.  

 

635,800 

 

14,222,846 

Hanover Insurance Group, Inc.  

 

368,800 

 

12,970,696 

IPC Holdings Ltd.  

 

509,500 

 

12,946,395 

Odyssey Re Holdings Corp. (a) 

 

330,050 

 

15,334,123 

Platinum Underwriters Holdings Ltd.  

 

453,450 

 

12,714,738 

Safety Insurance Group, Inc.  

 

404,700 

 

12,654,969 

Selective Insurance Group, Inc. (a) 

 

628,700 

 

7,563,261 

StanCorp Financial Group, Inc.  

 

467,800 

 

8,415,722 

United Fire & Casualty Co.  

 

648,800 

 

11,003,648 

 

**151,841,307**

**Real Estate Investment Trusts 0.8%**

 
Alexandria Real Estate Equities, Inc. (REIT) (a) 

 

236,500 

 

**9,450,540**

**Health Care 6.8%**

 
**Health Care Equipment & Supplies 0.7%**

 
Inverness Medical Innovations, Inc.*  

 

354,800 

 

**7,972,356**

**Health Care Providers & Services 5.1%**

 
Amedisys, Inc.* (a) 

 

285,561 

 

9,340,700 

AmSurg Corp.*  

 

563,554 

 

8,802,714 

Healthspring, Inc.*  

 

835,350 

 

6,766,335 

LifePoint Hospitals, Inc.* (a) 

 

843,800 

 

17,736,676 

MEDNAX, Inc.*  

 

510,900 

 

15,122,640 

 

**57,769,065**

**Life Sciences Tools & Services 1.0%**

 
PerkinElmer, Inc.  

 

832,450 

 

**10,721,956**

**Industrials 15.6%**

 
**Aerospace & Defense 2.1%**

 
Curtiss-Wright Corp. (a) 

 

469,300 

 

12,478,687 

Esterline Technologies Corp.*  

 

436,300 

 

11,055,842 

 

**23,534,529**

**Commercial Services & Supplies 1.4%**

 
The Brink's Co.  

 

648,800 

 

**15,486,856**

**Construction & Engineering 2.2%**

 
EMCOR Group, Inc.*  

 

895,600 

 

13,801,196 

URS Corp.*  

 

355,900 

 

11,004,428 

 

**24,805,624**

**Electrical Equipment 2.5%**

 
Baldor Electric Co. (a) 

 

729,100 

 

8,902,311 

General Cable Corp.* (a) 

 

355,900 

 

5,491,537 

Regal-Beloit Corp. (a) 

 

480,750 

 

13,787,910 

 

**28,181,758**

**Machinery 4.4%**

 
Barnes Group, Inc. (a) 

 

1,126,600 

 

10,499,912 

Gardner Denver, Inc.*  

 

640,100 

 

12,110,692 

 

 

 

Joy Global, Inc. (a) 

 

605,700 

 

10,575,522 

Kennametal, Inc.  

 

822,400 

 

13,421,568 

Mueller Water Products, Inc. "A"  

 

1,275,750 

 

2,742,863 

 

**49,350,557**

**Professional Services 0.5%**

 
Kelly Services, Inc. "A" (a) 

 

739,150 

 

**5,617,540**

**Road & Rail 1.6%**

 
Genesee & Wyoming, Inc. "A"*  

 

496,550 

 

10,372,929 

Ryder System, Inc.  

 

357,131 

 

8,164,015 

 

**18,536,944**

**Trading Companies & Distributors 0.9%**

 
GATX Corp. (a) 

 

526,700 

 

**9,622,809**

**Information Technology 10.8%**

 
**Communications Equipment 1.4%**

 
CommScope, Inc.* (a) 

 

727,700 

 

6,498,361 

Plantronics, Inc.  

 

1,016,100 

 

8,728,299 

 

**15,226,660**

**Electronic Equipment, Instruments & Components 4.5%**

 
Anixter International, Inc.* (a) 

 

569,800 

 

16,757,818 

Jabil Circuit, Inc.  

 

2,425,500 

 

10,041,570 

Mettler-Toledo International, Inc.*  

 

186,600 

 

9,947,646 

Park Electrochemical Corp. (a) 

 

925,045 

 

14,532,457 

 

**51,279,491**

**IT Services 2.3%**

 
CACI International, Inc. "A"*  

 

332,950 

 

14,240,271 

DST Systems, Inc.* (a) 

 

393,200 

 

11,567,944 

 

**25,808,215**

**Software 2.6%**

 
Jack Henry & Associates, Inc.  

 

1,042,002 

 

16,599,092 

Sybase, Inc.* (a) 

 

488,150 

 

13,267,917 

 

**29,867,009**

**Materials 5.6%**

 
**Chemicals 0.8%**

 
RPM International, Inc.  

 

788,900 

 

**8,551,676**

**Metals & Mining 4.8%**

 
IAMGOLD Corp.  

 

2,325,950 

 

18,793,676 

Pan American Silver Corp.* (a) 

 

876,950 

 

12,628,080 

Reliance Steel & Aluminum Co.  

 

535,800 

 

12,746,682 

Worthington Industries, Inc. (a) 

 

1,248,600 

 

10,238,520 

 

**54,406,958**

**Telecommunication Services 1.9%**

 
**Diversified Telecommunication Services**

Alaska Communications Systems Group, Inc. (a) 

 

1,432,300 

 

9,009,167 

Iowa Telecommunications Services, Inc. (a) 

 

898,500 

 

12,183,660 

 

**21,192,827**

**Utilities 5.6%**

 
**Electric Utilities 3.0%**

 
ALLETE, Inc.  

 

394,650 

 

10,513,476 

IDACORP, Inc.  

 

465,011 

 

11,318,368 

 

 

 

NV Energy, Inc.  

 

1,274,450 

 

11,814,151 

 

**33,645,995**

**Multi-Utilities 2.6%**

 
Integrys Energy Group, Inc. (a) 

 

312,850 

 

7,524,043 

TECO Energy, Inc.  

 

1,182,550 

 

11,340,654 

Vectren Corp.  

 

519,500 

 

10,836,770 

 

**29,701,467**

**Total Common Stocks** (Cost $1,547,851,395)

 

**1,074,368,049**

 

**Securities Lending Collateral 24.5%**

 
Daily Assets Fund Institutional, 1.05% (b) (c)(Cost $275,800,405)

 

 

275,800,405

 

**275,800,405**

 

**Cash Equivalents 5.8%**

 
Cash Management QP Trust, 0.85% (b)(Cost $65,547,698)

 

 

65,547,698

 

**65,547,698**

 

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

 

**Value ($)**

**Total Investment Portfolio** (Cost $1,889,199,498) †

125.7

 

**1,415,716,152**

**Other Assets and Liabilities, Net**

(25.7)

 

**(289,011,505)**

**Net Assets**

100.0

 

**1,126,704,647**

*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 $1,897,908,148.  At February 28, 2009, net unrealized depreciation for all securities based on tax cost was $482,191,996.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $40,535,353 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $522,727,349.*

*(a)*

*All or a portion of these securities were on loan. The value of all securities loaned at February 28, 2009 amounted to $263,513,931 which is 23.4% 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.*

*REIT: Real Estate Investment Trust*

 

 

 

 

***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 

$           1,350,168,454   

Level 2 

65,547,698   

Level 3 

-   

**Total**

**$          1,415,716,152**

 

**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 22, 2009

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Registrant: 

DWS Dreman Small 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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