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)

 

222 South Riverside Plaza

Chicago, IL  60606

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY  10154

(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: 08/31/07

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of August 31, 2007  (Unaudited)** |
|----------------------|----------------------------------------|

 

 

**DWS Dreman High Return Equity Fund**

 

|   | **Shares**              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **Value ($)** |
|--------|-------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|        |
|   | **Common Stocks 90.5%** |  
**Consumer Discretionary 5.4%**

 
**Multiline Retail 0.7%**

 
Macy's, Inc.  

 

2,006,750 

 

**63,654,110**

**Specialty Retail 4.7%**

 
Borders Group, Inc. (a) (b)

 

3,495,900 

 

52,438,500 

Home Depot, Inc.  

 

3,535,600

 

135,448,836

Lowe's Companies, Inc.  

 

4,532,600 

 

140,782,556 

Staples, Inc.  

 

3,739,517 

 

88,813,529 

 

**417,483,421**

 

 

 

 

**Consumer Staples 10.2%**

 
**Tobacco**

Altria Group, Inc.  

 

8,314,815 

 

577,131,309 

Imperial Tobacco Group PLC (ADR)  

 

710,950 

 

64,340,975 

UST, Inc. (b) 

 

5,364,330 

 

264,354,183 

 

**905,826,467**

**Energy 23.0%**

 
**Oil, Gas & Consumable Fuels**

Anadarko Petroleum Corp.  

 

4,941,600 

 

242,039,568 

Apache Corp.  

 

3,311,400 

 

256,236,132 

Chevron Corp. (b) 

 

3,715,025 

 

326,030,594 

ConocoPhillips  

 

8,292,065 

 

679,037,203 

Devon Energy Corp.  

 

3,716,800 

 

279,912,208 

EnCana Corp. (b) 

 

1,416,042 

 

82,838,457 

Occidental Petroleum Corp.  

 

2,920,328 

 

165,553,394 

 

**2,031,647,556**

**Financials 23.7%**

 
**Commercial Banks 7.0%**

 
KeyCorp.  

 

2,213,400 

 

73,706,220 

PNC Financial Services Group, Inc.  

 

3,157,864 

 

222,218,890 

US Bancorp.  

 

4,193,960 

 

135,674,606 

Wachovia Corp.  

 

3,868,824 

 

189,494,999 

 

**621,094,715**

**Diversified Financial Services 2.6%**

 
Bank of America Corp.  

 

2,867,001 

 

145,299,610 

CIT Group, Inc.  

 

947,275 

 

35,589,122 

JPMorgan Chase & Co.  

 

1,044,569 

 

46,504,212 

 

**227,392,944**

**Insurance 3.0%**

 
Chubb Corp.  

 

2,551,900 

 

130,478,647 

Hartford Financial Services Group, Inc.  

 

1,197,700 

 

106,487,507 

The Travelers Companies, Inc.  

 

494,660 

 

25,000,117 

 

**261,966,271**

**Thrifts & Mortgage Finance 11.1%**

 
Fannie Mae  

 

3,852,625 

 

252,770,726 

Freddie Mac  

 

6,909,984 

 

425,724,114 

Sovereign Bancorp, Inc. (b) 

 

4,135,082 

 

74,762,283 

Washington Mutual, Inc.  

 

6,289,699 

 

230,957,747 

 

**984,214,870**

**Health Care 15.2%**

 
**Biotechnology 0.7%**

 
Amgen, Inc.*  

 

1,212,000 

 

**60,733,320**

**Health Care Equipment & Supplies 0.0%**

 
Covidien Ltd.

 

90,143 

 

**3,590,396**

**Health Care Providers & Services 6.5%**

 
Aetna, Inc.  

 

3,688,320 

 

187,772,371 

Quest Diagnostics, Inc. (b) 

 

427,383 

 

23,399,219 

UnitedHealth Group, Inc.  

 

7,264,420 

 

363,293,644 

 

**574,465,234**

**Pharmaceuticals 8.0%**

 
Eli Lilly & Co.  

 

1,701,700 

 

97,592,495 

Pfizer, Inc.  

 

12,230,600 

 

303,808,104 

 

 

 

 

Wyeth  

 

6,599,990 

 

305,579,537 

 

**706,980,136**

**Industrials 8.9%**

 
**Aerospace & Defense 2.7%**

 
Northrop Grumman Corp.  

 

1,116,000 

 

87,985,440 

United Technologies Corp.  

 

2,025,500 

 

151,163,065 

 

**239,148,505**

**Air Freight & Logistics 0.5%**

 
FedEx Corp.  

 

348,200 

 

**38,190,576**

**Commercial Services & Supplies 0.1%**

 
Corrections Corp. of America*  

 

356,142 

 

**9,138,604**

**Industrial Conglomerates 5.6%**

 
3M Co.  

 

3,318,215 

 

301,924,383 

General Electric Co.  

 

4,871,400 

 

189,351,318 

Tyco International Ltd.  

 

147,910 

 

6,531,705 

 

**497,807,406**

**Information Technology 0.5%**

 
**Electronic Equipment & Instruments 0.0%**

 
Tyco Electronics Ltd.*  

 

58,761 

 

**2,048,996**

**Software 0.5%**

 
Microsoft Corp.  

 

1,547,300 

 

**44,453,929**

**Materials 0.0%**

 
**Chemicals**

Tronox, Inc. "B"  

 

4,368 

 

**44,030**

**Telecommunication Services 2.3%**

 
**Diversified Telecommunication Services**

Verizon Communications, Inc.  

 

4,794,100 

 

**200,776,908**

**Utilities 1.3%**

 
**Independent Power Producers & Energy Traders**

TXU Corp.  

 

1,750,100 

 

**117,956,740**

**Total Common Stocks** (Cost $5,734,227,605)

 

**8,008,615,134**

 

**Securities Lending Collateral 1.8%**

 
Daily Assets Fund Institutional, 5.49%  (c) (d)(Cost $160,766,130)

 

 

160,766,130

 

**160,766,130**

 

**Cash Equivalents 9.0%**

 
Cash Management QP Trust, 5.32%  (c)(Cost $790,951,846)

 

 

790,951,846

 

**790,951,846**

 

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

 

**Value ($)**

**Total Investment Portfolio** (Cost $6,685,945,581) 

101.3

 

**8,960,333,110**

**Other Assets and Liabilities, Net**

(1.3) 

 

**(114,326,964)**

**Net Assets**

100.0

 

 

**8,846,006,146**

 

*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.*

*(a)*

*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 nine months ended August 31, 2007 with companies which are or were affiliates is as follows:*

 

 

 

 

***Affiliate*****

***Value ($) at 11/30/2006*****

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

***Sales   Cost (s)*****

***Realized Gain/Loss ($)*****

***Dividend Income ($)*****

***Shares at   8/31/2007*****

***Value ($) at 8/31/2007*****

 
*Borders Group, Inc.***

*120,376,140***

*-***

*29,115,137***

*7,346,644***

*1,507,330***

*3,495,900***

*52,438,500***

 
*(b)*

*All or a portion of these securities were on loan.  The value of all securities loaned at August 31, 2007 amounted to $157,046,715 which is 1.8% of net assets.*

*(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*

*ADR: American Depositary Receipt*

*At August 31, 2007, open futures contracts purchased were as follows:*

**Futures**

 

**Expiration****Date**

 

**Contracts**

 

**Aggregated****Face****Value ($)**

 

**Value ($)**

 

**Unrealized****Depreciation ($)**

 

S&P 500 Index 

 

9/20/2007 

 

2,095 

 

807,170,156 

 

773,421,625 

 

(33,748,531)

 
 

**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 half-year (the registrant’s second fiscal half-year in the case of the annual report) 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 High Return Equity Fund, a series of DWS Value Series, Inc.

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

October 17, 2007

 

 

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 High Return Equity Fund, a series of DWS Value Series, Inc.

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

October 17, 2007

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        October 17, 2007

 

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