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: 08/31/08

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of August 31, 2008  (Unaudited)** |
|----------------------|----------------------------------------|

 

 

**DWS Dreman Mid Cap Value Fund**

 

 

|   | **Shares**              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **Value ($)** |
|--------|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|        |
|   | **Common Stocks 90.5%** |  
**Consumer Discretionary 13.5%**

 
**Auto Components 1.6%**

 
Autoliv, Inc.  

 

92,100 

 

**3,535,719**

**Hotels Restaurants & Leisure 0.9%**

 
Royal Caribbean Cruises Ltd.  

 

73,600 

 

**2,000,448**

**Household Durables 2.5%**

 
Fortune Brands, Inc.  

 

59,350 

 

3,490,967 

Whirlpool Corp.  

 

24,450 

 

1,989,252 

 

**5,480,219**

**Leisure Equipment & Products 2.8%**

 
Mattel, Inc.  

 

319,850 

 

**6,182,700**

 

 

 

**Media 0.8%**

 
CBS Corp. "B"  

 

108,200 

 

**1,750,676**

**Specialty Retail 4.9%**

 
The Men's Wearhouse, Inc. (a) 

 

144,550 

 

3,165,645 

The Sherwin-Williams Co.  

 

83,900 

 

4,912,345 

TJX Companies, Inc.  

 

75,050 

 

2,719,812 

 

**10,797,802**

**Consumer Staples 2.8%**

 
**Food & Staples Retailing 1.4%**

 
SUPERVALU, Inc.  

 

131,750 

 

**3,055,283**

**Food Products 1.4%**

 
Corn Products International, Inc.  

 

20,400 

 

913,716 

The J.M. Smucker Co.  

 

39,550 

 

2,144,796 

 

**3,058,512**

**Energy 9.2%**

 
**Energy Equipment & Services 2.8%**

 
BJ Services Co.  

 

74,800 

 

2,008,380 

Superior Energy Services, Inc.*  

 

88,100 

 

4,144,224 

 

**6,152,604**

**Oil, Gas & Consumable Fuels 6.4%**

 
Cameco Corp.  

 

97,550 

 

2,934,304 

Chesapeake Energy Corp.  

 

3,200 

 

154,880 

Cimarex Energy Co.  

 

57,850 

 

3,212,989 

Newfield Exploration Co.*  

 

78,100 

 

3,531,682 

Noble Energy, Inc.  

 

59,550 

 

4,271,521 

 

**14,105,376**

**Financials 14.3%**

 
**Commercial Banks 5.3%**

 
Comerica, Inc.  

 

136,850 

 

3,844,117 

KeyCorp  

 

361,650 

 

4,343,416 

Marshall & Ilsley Corp. (a) 

 

227,049 

 

3,496,555 

 

**11,684,088**

**Diversified Financial Services 1.5%**

 
CIT Group, Inc.  

 

314,600 

 

**3,243,526**

**Insurance 4.8%**

 
Cincinnati Financial Corp.  

 

89,350 

 

2,648,334 

HCC Insurance Holdings, Inc.  

 

213,300 

 

5,370,894 

Protective Life Corp.  

 

71,950 

 

2,611,065 

 

**10,630,293**

**Real Estate Investment Trusts 2.7%**

 
Hospitality Properties Trust (REIT)  

 

71,350 

 

1,618,218 

Ventas, Inc. (REIT)  

 

98,950 

 

4,494,309 

 

**6,112,527**

**Health Care 8.2%**

 
**Health Care Equipment & Supplies 4.3%**

 
Beckman Coulter, Inc.  

 

41,900 

 

3,093,058 

Kinetic Concepts, Inc.*  

 

76,800 

 

2,700,288 

The Cooper Companies, Inc.  

 

98,450 

 

3,625,914 

 

**9,419,260**

 

 

 

**Health Care Providers & Services 1.6%**

 
CIGNA Corp.  

 

85,300 

 

**3,572,364**

**Pharmaceuticals 2.3%**

 
Biovail Corp.  

 

241,450 

 

2,583,515 

Mylan, Inc.*  

 

191,700 

 

2,471,013 

 

**5,054,528**

**Industrials 16.8%**

 
**Aerospace & Defense 4.3%**

 
Alliant Techsystems, Inc.*  

 

33,750 

 

3,551,513 

DRS Technologies, Inc.  

 

15,450 

 

1,230,129 

L-3 Communications Holdings, Inc.  

 

44,750 

 

4,651,315 

 

**9,432,957**

**Building Products 0.0%**

 
MascoTech, Inc. (Escrow Shares)*  

 

90,800 

 

**0**

**Commercial Services & Supplies 2.3%**

 
Allied Waste Industries, Inc.*  

 

64,800 

 

870,912 

R.R. Donnelley & Sons Co.  

 

151,150 

 

4,214,062 

 

**5,084,974**

**Electrical Equipment 5.8%**

 
Cooper Industries Ltd. "A"  

 

96,250 

 

4,585,350 

General Cable Corp.*  

 

82,150 

 

4,043,423 

Hubbell, Inc. "B"  

 

94,550 

 

4,113,870 

 

**12,742,643**

**Machinery 3.2%**

 
Eaton Corp.  

 

36,950 

 

2,704,001 

Parker Hannifin Corp.  

 

67,125 

 

4,300,699 

 

**7,004,700**

**Trading Companies & Distributors 1.2%**

 
WESCO International, Inc.*  

 

72,700 

 

**2,794,588**

**Information Technology 8.3%**

 
**Computers & Peripherals 1.6%**

 
Seagate Technology  

 

240,500 

 

**3,585,855**

**Electronic Equipment, Instruments & Components 3.4%**

 
Anixter International, Inc.* (a) 

 

47,650 

 

3,517,047 

Arrow Electronics, Inc.*  

 

123,250 

 

4,090,667 

 

**7,607,714**

**IT Services 0.9%**

 
Affiliated Computer Services, Inc. "A"*  

 

35,800 

 

**1,905,992**

**Software 2.4%**

 
Check Point Software Technologies Ltd.*  

 

213,000 

 

**5,216,370**

**Materials 5.8%**

 
**Chemicals 3.1%**

 
CF Industries Holdings, Inc.  

 

17,800 

 

2,712,720 

PPG Industries, Inc.  

 

63,900 

 

4,016,754 

 

**6,729,474**

**Metals & Mining 1.7%**

 
Yamana Gold, Inc.  

 

343,600 

 

**3,717,752**

**Paper & Forest Products 1.0%**

 
International Paper Co.  

 

84,200 

 

**2,277,610**

 

 

 

**Telecommunication Services 2.0%**

 
**Diversified Telecommunication Services**

Windstream Corp.  

 

362,300 

 

**4,499,766**

**Utilities 9.6%**

 
**Electric Utilities 5.9%**

 
Edison International  

 

107,050 

 

4,915,736 

PPL Corp.  

 

98,650 

 

4,317,910 

Progress Energy, Inc.  

 

83,700 

 

3,656,016 

 

**12,889,662**

**Independent Power Producers & Energy Traders 0.0%**

 
Mirant Corp.*  

 

2,700 

 

**79,866**

**Multi-Utilities 3.7%**

 
Ameren Corp.  

 

89,850 

 

3,761,121 

Integrys Energy Group, Inc.  

 

85,650 

 

4,476,926 

 

**8,238,047**

**Total Common Stocks** (Cost $205,627,519)

 

**199,643,895**

 

**Securities Lending Collateral 2.7%**

 
Daily Assets Fund Institutional, 2.65% (b) (c)(Cost $6,038,450)

 

 

6,038,450

 

**6,038,450**

 

**Cash Equivalents 9.1%**

 
Cash Management QP Trust, 2.44% (b)(Cost $20,090,649)

 

 

20,090,649

 

**20,090,649**

 

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

 

**Value ($)**

**Total Investment Portfolio** (Cost $231,756,618) †

102.3

 

**225,772,994**

**Other Assets and Liabilities, Net**

(2.3)

 

**(5,057,841)**

**Net Assets**

100.0

 

**220,715,153**

*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 $231,864,797.  At August 31, 2008, net unrealized depreciation for all securities based on tax cost was $6,091,803.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $7,841,029 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $13,932,832.*

*(a)*

*All or a portion of these securities were on loan.  The value of all securities loaned at August 31, 2008 amounted to $5,938,818 which is 2.7% of net assets.*

*(b)*

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

*(c)*

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

 

*REIT: Real Estate Investment Trust*

 

***Fair Value Measurements***

 

*The following is a summary of the inputs used as of August 31, 2008 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 

$                  225,772,994

Level 2 

-   

Level 3

-   

**Total**

**$                  225,772,994**

 

 

*The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS* *157"), effective at the beginning of the Fund’s fiscal year. FAS* *157 establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs 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, credit risk, etc.).  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.*

 

 

**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 Mid Cap Value Fund, a series of DWS Value Series, Inc.

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

October 22, 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 Mid Cap Value Fund, a series of DWS Value Series, Inc.

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

October 22, 2008

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        October 22, 2008

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