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: 8/31/09

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of August 31, 2009  (Unaudited)** |
|----------------------|----------------------------------------|

 

 

**DWS Large Cap Value Fund**

 

|   | **Shares** |   | **Value ($)** |  
 

**Common Stocks 98.3%**

 
**Consumer Discretionary 5.2%**

 
**Distributors 1.6%**

 
Genuine Parts Co.  

 

713,854 

 

**26,441,152**

 
**Hotels Restaurants & Leisure 2.5%**

 
Burger King Holdings, Inc.  

 

404,177 

 

7,246,894 

 
Carnival Corp. (Units)  

 

1,128,392 

 

33,005,466 

 
 

**40,252,360**

 
**Textiles, Apparel & Luxury Goods 1.1%**

 
VF Corp.  

 

268,311 

 

**18,663,713**

 
 

 

**Consumer Staples 10.8%**

 
**Beverages 0.9%**

 
PepsiCo, Inc.  

 

272,338 

 

**15,433,394**

 
**Food & Staples Retailing 3.2%**

 
CVS Caremark Corp.  

 

840,530 

 

31,536,686 

 
Kroger Co.  

 

1,004,895 

 

21,695,683 

 
 

**53,232,369**

 
**Food Products 2.9%**

 
General Mills, Inc. (a) 

 

279,747 

 

16,709,288 

 
Kellogg Co.  

 

352,070 

 

16,578,976 

 
Kraft Foods, Inc. "A"  

 

473,587 

 

13,426,192 

 
 

**46,714,456**

 
**Tobacco 3.8%**

 
Altria Group, Inc.  

 

1,888,162 

 

34,515,602 

 
Philip Morris International, Inc. (a) 

 

608,585 

 

27,818,420 

 
 

**62,334,022**

 
**Energy 18.7%**

 
**Energy Equipment & Services 4.8%**

 
ENSCO International, Inc. (a) 

 

541,546 

 

19,983,047 

 
Noble Corp.  

 

509,548 

 

17,849,467 

 
Transocean Ltd.* (a) 

 

537,300 

 

40,748,832 

 
 

**78,581,346**

 
**Oil, Gas & Consumable Fuels 13.9%**

 
Anadarko Petroleum Corp.  

 

64,155 

 

3,391,875 

 
Canadian Natural Resources Ltd. (a) 

 

111,147 

 

6,360,943 

 
Chevron Corp.  

 

372,400 

 

26,045,656 

 
ConocoPhillips  

 

725,166 

 

32,654,225 

 
Devon Energy Corp. (a) 

 

245,132 

 

15,046,202 

 
ExxonMobil Corp.  

 

418,090 

 

28,910,923 

 
Marathon Oil Corp.  

 

835,597 

 

25,794,879 

 
Nexen, Inc.  

 

837,821 

 

16,471,561 

 
Noble Energy, Inc. (a) 

 

380,522 

 

23,006,360 

 
Suncor Energy, Inc.  

 

864,887 

 

26,500,138 

 
Sunoco, Inc. (a) 

 

899,919 

 

24,207,821 

 
 

**228,390,583**

 
**Financials 15.1%**

 
**Capital Markets 1.5%**

 
Ameriprise Financial, Inc.  

 

296,321 

 

8,898,520 

 
Morgan Stanley  

 

289,993 

 

8,398,197 

 
Northern Trust Corp. (a) 

 

128,208 

 

7,495,040 

 
 

**24,791,757**

 
**Commercial Banks 2.1%**

 
Cullen/Frost Bankers, Inc.  

 

141,717 

 

6,983,814 

 
KeyCorp  

 

1,462,308 

 

9,738,971 

 
M&T Bank Corp. (a) 

 

143,155 

 

8,841,253 

 
SunTrust Banks, Inc. (a) 

 

364,246 

 

8,512,429 

 
 

**34,076,467**

 
**Diversified Financial Services 4.1%**

 
Bank of America Corp. (a) 

 

1,438,130 

 

25,296,707 

 
JPMorgan Chase & Co.  

 

581,711 

 

25,281,160 

 
The NASDAQ OMX Group, Inc.*  

 

777,538 

 

17,066,959 

 
 

**67,644,826**

 
**Insurance 6.6%**

 
Allstate Corp.  

 

588,262 

 

17,289,020 

 
 

 

Assurant, Inc.  

 

632,199 

 

18,934,360 

 
Chubb Corp.  

 

159,136 

 

7,859,727 

 
Cincinnati Financial Corp.  

 

276,385 

 

7,108,622 

 
Fidelity National Financial, Inc. "A"  

 

555,779 

 

8,347,801 

 
First American Corp.  

 

238,405 

 

7,514,526 

 
HCC Insurance Holdings, Inc. (a) 

 

255,989 

 

6,768,349 

 
MetLife, Inc. (a) 

 

471,273 

 

17,795,268 

 
Odyssey Re Holdings Corp.  

 

169,708 

 

8,595,710 

 
PartnerRe Ltd. (a) 

 

108,833 

 

8,043,847 

 
 

**108,257,230**

 
**Thrifts & Mortgage Finance 0.8%**

 
New York Community Bancorp., Inc. (a) 

 

611,445 

 

6,505,775 

 
People's United Financial, Inc.  

 

372,304 

 

5,979,202 

 
 

**12,484,977**

 
**Health Care 12.6%**

 
**Health Care Equipment & Supplies 2.2%**

 
Baxter International, Inc.  

 

301,192 

 

17,143,849 

 
Becton, Dickinson & Co.  

 

273,746 

 

19,058,196 

 
 

**36,202,045**

 
**Health Care Providers & Services 3.0%**

 
McKesson Corp. (a) 

 

477,102 

 

27,128,020 

 
Medco Health Solutions, Inc.* (a) 

 

388,978 

 

21,479,365 

 
 

**48,607,385**

 
**Life Sciences Tools & Services 1.2%**

 
Thermo Fisher Scientific, Inc.* (a) 

 

437,349 

 

**19,772,548**

 
**Pharmaceuticals 6.2%**

 
Abbott Laboratories  

 

315,544 

 

14,272,055 

 
Bristol-Myers Squibb Co.  

 

759,534 

 

16,808,488 

 
Merck & Co., Inc. (a) 

 

1,036,861 

 

33,625,402 

 
Mylan, Inc.* (a) 

 

290,580 

 

4,262,809 

 
Teva Pharmaceutical Industries Ltd. (ADR) (a) 

 

626,400 

 

32,259,600 

 
 

**101,228,354**

 
**Industrials 7.5%**

 
**Aerospace & Defense 3.2%**

 
Honeywell International, Inc.  

 

776,950 

 

28,560,682 

 
United Technologies Corp.  

 

399,512 

 

23,715,032 

 
 

**52,275,714**

 
**Electrical Equipment 1.9%**

 
Emerson Electric Co.  

 

863,901 

 

**31,852,030**

 
**Machinery 1.3%**

 
Dover Corp.  

 

629,340 

 

**21,768,871**

 
**Road & Rail 1.1%**

 
Norfolk Southern Corp.  

 

386,261 

 

**17,717,792**

 
**Information Technology 1.9%**

 
**Communications Equipment 0.9%**

 
Brocade Communications Systems, Inc.*  

 

2,060,907 

 

**14,900,358**

 
**IT Services 1.0%**

 
Automatic Data Processing, Inc.  

 

418,012 

 

**16,030,760**

 
 

 

**Materials 6.4%**

 
**Chemicals 4.0%**

 
Air Products & Chemicals, Inc. (a) 

 

492,167 

 

36,927,290 

 
Praxair, Inc.  

 

373,866 

 

28,645,613 

 
 

**65,572,903**

 
**Containers & Packaging 1.4%**

 
Sonoco Products Co.  

 

852,006 

 

**22,101,036**

 
**Metals & Mining 1.0%**

 
Kinross Gold Corp.  

 

866,072 

 

**16,412,064**

 
**Telecommunication Services 8.2%**

 
**Diversified Telecommunication Services 6.7%**

 
AT&T, Inc.  

 

1,770,115 

 

46,111,496 

 
BCE, Inc.  

 

695,039 

 

17,077,108 

 
Deutsche Telekom AG (ADR) (a) 

 

1,254,036 

 

16,703,759 

 
Verizon Communications, Inc.  

 

933,321 

 

28,970,284 

 
 

**108,862,647**

 
**Wireless Telecommunication Services 1.5%**

 
Vodafone Group PLC (ADR) (a) 

 

1,159,825 

 

**25,191,399**

 
**Utilities 11.9%**

 
**Electric Utilities 9.8%**

 
Allegheny Energy, Inc.  

 

812,707 

 

21,463,592 

 
American Electric Power Co., Inc.  

 

613,433 

 

19,280,199 

 
Duke Energy Corp. (a) 

 

1,505,876 

 

23,326,019 

 
Entergy Corp.  

 

226,706 

 

17,909,774 

 
Exelon Corp.  

 

286,749 

 

14,343,185 

 
FirstEnergy Corp.  

 

543,525 

 

24,529,283 

 
FPL Group, Inc. (a) 

 

415,437 

 

23,339,251 

 
Southern Co.  

 

544,144 

 

16,977,293 

 
 

**161,168,596**

 
**Multi-Utilities 2.1%**

 
PG&E Corp. (a) 

 

827,361 

 

**33,582,583**

 
**Total Common Stocks** (Cost $1,552,077,731)

 

**1,610,545,737**

 
 

**Securities Lending Collateral 21.4%**

 
Daily Assets Fund Institutional, 0.29% (b) (c)(Cost $351,121,590)

 

 

351,121,590

 

**351,121,590**

 
 

**Cash Equivalents 0.7%**

 
Cash Management QP Trust, 0.22% (b)(Cost $11,477,523)

 

 

11,477,523

 

**11,477,523**

 
 

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

 

**Value ($)**

 
**Total Investment Portfolio** (Cost $1,914,676,844) †

120.4

 

**1,973,144,850**

 
**Other Assets and Liabilities, Net**

(20.4)

 

**(334,948,492)**

 
**Net Assets**

100.0

 

**1,638,196,358**

 
*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 $1,949,885,802.  At August 31, 2009, net unrealized appreciation for all securities based on tax cost was $23,259,048.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $138,049,075 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $114,790,027.*

 
 

 

*(a)*

*All or a portion of these securities were on loan.  The value of all securities loaned at August 31, 2009 amounted to $340,376,227 which is 20.8% of net assets.*

*(b)*

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

*(c)*

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

*ADR: American Depositary Receipt*

 

***Fair Value Measurements***

 

*Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements,” as amended, 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 August 31, 2009 in valuing the Fund's investments:*

 

**Assets**

**Level 1**

**Level 2**

**Level 3**

**Total**

 
Common Stock and/or Other Equity Investments(d)

$   1,610,545,737

$              —

$                 —

$    1,610,545,737

 
Short-Term Investments(d)

351,121,590

11,477,523

—

362,599,113

 
**Total**

**$   1,961,667,327**

**$   11,477,523**

**$**—

**$    1,973,144,850**

 
 

 

 

 

 

 
*(d)*

*See Investment Portfolio for additional detailed categorizations.*

 

 

**ITEM 2.**

**CONTROLS AND PROCEDURES**

 

 

 

(a)          The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

 

 

 

(b)         There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.

 

 

**ITEM 3.**

**EXHIBITS**

 

 

 

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

 

**SIGNATURES**

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Registrant:

DWS Large Cap Value Fund, a series of DWS Value Series, Inc.

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

October 21, 2009

 

 

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

 

Registrant:

DWS Large Cap Value Fund, a series of DWS Value Series, Inc.

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

October 21, 2009

 

 

 

 

 

 

By:

/s/Paul Schubert

Paul Schubert

Chief Financial Officer and Treasurer

 

 

Date:

October 21, 2009

 

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