BIG IDEAS FIVE INTREPID 'INVESTORS' EMBARK ON NEW DN STOCK PICKING CONTEST.

Byline: Evan Pondel Staff Writer

A flat-lined economy offers little solace for investors. But as the market slowly pulls back into better territory, five San Fernando Valley investors are participating in the next Daily News Stock Picking Contest.

Each contestant has received $100,000 in fictitious cash to manage portfolios from April 1 to August 30. Participants can buy and sell daily, but a $50 commission fee is attached to each trade. The contestants can only invest in companies traded on the New York Stock Exchange, Nasdaq and American Stock Exchange.

While it is challenging to invest in a market on the mend, these contestants face even more obstacles. Russell Fox, a certified financial planner with American Express, said the market has bounced back from its lows in October, but that doesn't mean it's going to continue to rise.

``The S&P was flat for the first quarter ... and we'll probably see a very slow recovery from here on out,'' he said.

Michael De Coux isn't concerned.

His son is finally home from Germany after serving a four-year stint in the U.S. Air Force, his wife is pregnant and he's almost fully recovered from a motorcycle accident that nearly rendered him a paraplegic.

``I'd say I take a lot less risks in my life now - and that can be seen in my investing philosophy,'' said De Coux, 40, who currently resides in Palmdale.

De Coux's portfolio reflects his prudence: Most of his investments are tied up in stable companies. He has invested more than $71,000 in Berkshire Hathaway, an Omaha, Neb.-based insurance company, and about $5,060 in Circuit City Stores Inc.-CarMax, a Richmond, Va.-based retailer of used cars.

De Coux said his biggest fear is that he will be in last place once the contest comes to an end. ``And I don't want to be totally embarrassed if I lose .... I've been playing the market since 1984.''

Unlike De Coux, Kaye Krassner doesn't have a lot of experience investing in the market. When she's not at school, working toward her degree from California State University, Northridge, Krassner's knee-high in soil, extracting the weeds from her garden.

``I'm an avid gardener,'' said Krassner, 43, from Camarillo. ``And I have a pretty neat and symmetrical garden, too.''

Krassner is applying her ability to keep a tidy garden to her stock picking strategy. Beginning the contest with only three companies in her portfolio, she's averse to speculation. So she's relying on brand recognition. Her picks include Kohl's Corp., a Menomonee Falls, Wis.-based department store chain; Philip Morris, a New York-based cigarette manufacturer; and Texas Instruments, a Dallas, Texas-based electronics manufacturer.

``All of my knowledge is academic - techniques I've learned from school,'' she said. ``I'm planning on taking a wait-and-see-approach before I get aggressive.''

Robert Henri is of a different ilk. The 37-year-old from Tarzana has been buying and selling stocks daily at various online trading posts for several years. ``I once had a broker, but then I started trading on my own and noticed that my performance was just as good, if not better.''

Henri's portfolio doesn't appear quite as aggressive as his trading habits, but he said there may be a clandestine plan in the making. Atlanta-based Coca-Cola, Kimberly Clark and Southwest Airlines - both based in Dallas - made the cut for his portfolio.

Henri's true passion has nothing to do with the stock market, though. ``I love saltwater fishing,'' he said. ``And the biggest fish I ever caught was a 22-pound yellowtail.''

Jayesh Patel has an affinity for fishing as well. However, he doesn't have an appetite for edible fish. ``I'm trying hook that company that will boost my portfolio,'' he said.

Patel came to the U.S. several years ago from Ehmedabad, India. The 34- year-old lives in Westlake Village with his wife and 6-year-old son. He has his master's degree in business administration from University of California, Riverside, and supports Westlake Village-based Net Zero's finance and human resources applications.

``I enjoy investing and still have a seat on India's biggest stock exchange,'' Patel said. ``I'd say a big difference between people's investment philosophy here versus India is that there's more risk over there (India) and less value in the currency.''

Patel's portfolio includes Fremont-based Protein Design Labs and Irvine-based Broadcom.

Chris Vaughn knows he's up against some steep competition, yet he still is confident about standing tallest among the other contestants. The 34- year-old actor, who resides in Burbank, has been investing for a little over three years.

``My stocking picking strategy is going to shy away from being too technical,'' he said.

To ensure a strong start, Vaughn has invested in Wilmington, N.C.-based Pharmaceutical Product Development and Cambridge, Mass.-based Vertex Pharmaceuticals.

CAPTION(S):

5 photos

Photo:

(1 -- color) - Chris Vaughn

(2 -- color) - Robert Henri

(3 -- color) - Michael De Coux

(4 -- color) - Jayesh Patel

(5 -- color) - Kaye Krassner

John Lazar/Staff Photographer