A RUN FOR THE MONEY EX-PRINCIPAL TURNS SHARK IN RACE'S FINAL DAYS.

Byline: Stories by Evan Pondel Staff Writer

Separating the tycoons from the tenderfoots is a difficult feat in a market on the mend.

Since the eighth semiannual Daily News Stock Picking Contest began six months ago, the market has returned to what Wall Street deems a less volatile level. And for the five contestants who entered the contest Oct. 1, all portfolios finished in the black, another reminder of Wall Street's return.

``The fact that these contestants had great gains doesn't surprise me. The typical blue chip stock is up 40 percent right now,'' said Craig Skeels, a financial adviser with American Express in Camarillo.

But the average blue chips' advance doesn't come close to the performance of the contest's winner, Allen Sussman. In a swashbuckling finish, Sussman surpassed Tom Avilla, who held the top position for nearly the entire run of the contest. But a flurry of trades by Sussman in the final days gave him the top final portfolio: $314,732.90.

Each contestant started with $100,000 in fictitious cash to invest in the stock market. Every week, the contestants' portfolios were tallied on Monday, accounting for every transaction.

Strategies evolved as the contest progressed. About midway through, Sussman said he was planning a complete overhaul of his techniques in an attempt to stand the tallest among the other participants.

``It became extremely personal toward the end,'' said Sussman, a retired elementary school principal from Sherman Oaks.

Sussman proved his determination, posting a 214 percent gain. But his early work belied his championship picking: In the first week of the contest, Sussman's portfolio was down $3,000. A week later, it was still down about $1,000. ``I was so frustrated, seeing this happen,'' he said.

Disenchanted, Sussman snapped up a few profitable trades. And by Dec. 10, he had shimmied his way into third place.

His final war cry didn't arrive until last week, though. The stock-picking savant managed to eke out second place, and then he made his final push toward first. On Thursday, he decided to risk his winnings and dumped all his money into one stock, Andrx Group. The pharmaceutical soared $8.46 Friday to $41.91, securing Sussman's seat in the top slot.

Even so, Avilla, who consistently led the stock picking pack since October, prompted most of the change in how the contestants managed their portfolios, Sussman said.

Avilla stuck to his strategy until the end, at which point his position in first place was wiped away. ``I've been investing since I was 18, and after all the brokers and losing a lot of money on my own, I developed my own techniques,'' said Avilla, 48. ``I'm still trying to improve upon my own methodologies.''

The accountant from Sherman Oaks finished the contest with $239,594 in his portfolio, an impressive 140 percent gain.

``Before telling everyone how I do it, I want to make sure and emphasize that everyone should develop their own trading strategy,'' he said.

Avilla subscribes to a $30-a-month service called TeleChart 2000, which charts stocks' performance. Avilla said he studies the charts every evening and notes the volume at which these stocks are trading. Once he spots a company that's trading with a volume greater than the 50-day moving average, he investigates the stock.

``I look for fundamentals like management, and the products that these companies are manufacturing,'' Avilla said.

Other factors Avilla looks for include the stock's 11-day moving average and the slope the price forms. ``I always select the stocks that go up,'' he said. ``The key is you have to know when a stock is performing the way it should.''

Jason Friedman, 23, certainly thought he knew the way his stocks were headed, he said. The California State University, Northridge, student stunned the other contestants in his ability to wield a competitive portfolio with little experience. His final tally: $186,706.20.

``However, I learned that after-hours trading doesn't necessarily represent how the following day will fare,'' he said.

Friedman also caught on to Avilla's strategy, boosting his portfolio into second place for most of the contest. He said it was time-consuming to prepare the stocks for his portfolio, which subtracted at least two hours a day from his school studies.

``And I don't think the leaders of the contest are smarter than the others, I just think they have more time to spend working on their portfolio,'' he said.

June Sattler, 65, understands the time commitment the contest commands. She said between producing plays and acting, it was difficult to sit down and focus on the contest. Sattler's portfolio rose 11 percent to $111,202.15 largely by standing on Amazon.com, Kmart Corp. and 99 Cents Only Stores.

Norman Brown, 80, from Tarzana, finished the contest in last place. At one point, Brown bounced between second and third place. His portfolio came in at $106,513.

How'd he do it?

For Allen Sussman, what started as a game became a calculated exercise to dethrone a leader and wear the crown.

A coup d'etat of sorts - a final push for glory that required that Sussman taste every place but first until the final day of the contest.

At the closing bell Friday, Sussman had amassed a fictional $314,732.90.

Sussman, 65, of Sherman Oaks proved his stock-picking savvy in the last four weeks of the contest. Several key trades helped the retired elementary school principal clear the $150,000 mark in the last week - then double that to edge longtime front-runner Tom Avilla.

To accomplish this, he moved in and out of stocks like a featherweight fighter, never languishing too long for fear of being stung, he said.

Sussman invested in companies that were about to announce news, whether positive earnings or approval of a new drug. ``I would then watch the stock carefully and as soon as the stock went up, I would take the profit and get out,'' he said.

His final drive for first place occurred Thursday, when he sold off his portfolio, leaving a lump sum of about $235,000 in his cash account. He then invested all the money in Andrx Group, a Davie, Fla.-based pharmaceutical company that rose $8.46, or 25.29 percent, to close at $41.91 on Friday. The company advanced after the drug maker said a federal judge had thrown out a lawsuit alleging that Andrx's generic versions of certain antidepressants infringe on Glaxo patents.

``I knew that I wanted this stock and I was prepared to bet it all. I just had to catch that guy (Avilla),'' he said.

Still, Sussman's portfolio reached heights that even he has difficulty rationalizing. And though his stock smarts are derived from myriad variables, ``I did follow Avilla's techniques,'' he admits. Avilla executed ``swing trades,'' essentially buying and selling stocks throughout the week, without actually buying and selling the same stock on a given day.

``I've also been an investor for 25 years, and in the past I've been known to hold on to stocks for a while, but not this time around,'' Sussman said. ``Personally, I don't think trading day to day is that healthy, although I wanted to win this contest, and that's what you need to do.''

Every night, Sussman would spend three to four hours researching stocks for the contest. ``I put in tremendous time, and it became a personal matter to beat Tom (Avilla),'' he said. His trades were called in about 6 a.m. daily.

Sussman's aggressive investment philosophy has evolved since October. He began the contest with a conservative attitude, instilling discipline and patience in every trade. However, he wasn't satisfied with the outcome.

``So I became really active and made a lot of progress,'' he said. ``I've even become more active in investing for my real portfolio. My wife and I are going to take a look at all of our investments and rethink our strategy as a result of my experience in this contest.''

One caveat: ``The stock-picking contest was a game, and people should realize that.''

CAPTION(S):

2 photos, 2 boxes

Photo:

(1 -- color) Ex-principal Allen Sussman lagged behind early in the Daily News Stock Picking Contest but pulled it out in the final week.

(2 -- color) Meticulous investor Tom Avilla led in the Stock Picking Contest until the final week, when Allen Sussman shot ahead.

Phil McCarten/Staff Photographer

Box:

(1) How'd he do it? (see text)

(2) AT THE BUZZER