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What 'American Idol' can teach you about solar stocks

"I can't believe I won," cried Jordin Sparks, winner of last year's American Idol. Within seconds, industry and non-industry drones alike began formulating ways to attach themselves to her in some way, crazy in anticipation of the inevitable riches.

Months later, several Wall Street types were overheard saying, "I can't believe oil keeps going higher, alternative energy stocks are going to be hot, hot, hot," and thousands of investors went wild buying shares of the dozen or so solar stocks, crazy in anticipation of the inevitable riches.

Each industry has its stars: Kelly Clarkson, Carrie Underwood and Clay Aiken -- as determined by album sales -- for American Idol, First Solar (NASDAQ: FSLR), Sunpower (NASDAQ: SPWR) and MEMC Electronic Materials (NYSE: WFR) -- as determined by stock performance -- for the solar industry.

Continue reading What 'American Idol' can teach you about solar stocks

Money Losers of 2007: Kelly Clarkson's edgier sound leads to ebbing sales

Kelly Clarkson In the summer of 2002, four little words -- "A Moment Like This" -- catapulted Kelly Clarkson from small-town Texas karaoke-singing waitress to the first American Idol superstar. Three years later, her second album Breakaway had five hit singles, including "Since U Been Gone," one of the top pop hits of the year. A pair of Grammy awards, multiple platinum designations, and an endorsement deal with Ford Motor Co. (NYSE: F) followed, and "Miss Independent" was on top of the world, albeit still under some creative control of 19 Entertainment and the Idol family.

In 2007, a matured Clarkson was dealing with a breakup in her personal life and a desire for a darker sound. She wrote or co-wrote every track on her third album effort, My December, which was released in late June to mixed critical reviews and sales that paled in comparison to Breakaway and her debut, Thankful. In the six months following its release, fewer than a million copies had been purchased in the U.S. Perhaps the edgier tone to the record alienated her teeny-bopper fans.

Kelly parted ways with her management company in June, with a source telling tabloid Us Weekly that there was disagreement "over the songs and the direction" of My December. Low ticket sales then prompted the cancellation of her summer arena tour.

But Kelly's still young and vibrant, with a good head on her shoulders and a great voice for pop music. She's embarking upon a tour of smaller venues earlier next year and already at work on her fourth album. I'm confident she'll be back on top again ... there will be another "moment like this" for the American Idol groundbreaker.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Be sure to check out other Money Losers of 2007.

Will Miley Cyrus last as Disney's (DIS) new teen queen?

It doesn't seem that long ago that Hilary Duff was The The Walt Disney Company (NYSE: DIS) Channel's shining -- well more like blinding -- star. Hilary had it all: talent, looks, and an innocence that emanates only from Disney Channel stars. But once Duff's 65-episode Disney series Lizzie McGuire peaked in 2001, she went on to other things, including a 2003 album that reached No. 1 on the Billboard 200 (the project sold 3.7 million copies), an Elizabeth Arden fragrance, a clothing line, and another album that debuted earlier this year. What that meant for Disney was that Hilary was out. It didn't take long for someone else to move in -- Miley Cyrus.

You're probably wondering why that name sounds so familiar. Well, it's because Miley Cyrus is the daughter of country singer Billy Ray Cyrus, best known for his top 40 hit "Achy Breaky Heart." Not only are both father and daughter singers, but they are also actors and show off both of their talents, together, on Disney Channel's new hit show Hannah Montana. The show premiered with 5.5 million viewers and 2.3 million tweens (kids 9-14) and became basic cable's top series in the tween demo in its first seven weeks. On the show, Miley plays a teenager trying to lead a normal life while hiding her secret, alter-ego rock star persona Hannah Montana from her classmates. Billy Ray plays her father (you can't get anymore true-to-life than that).



How are Miley and Hannah doing? According to Fortune, "The Disney Channel Hannah Montana series hasn't just been a huge hit with kids and 'tweens; it's become a ubiquitous franchise." The 2006 Hannah Montana soundtrack entered the Billboard 200 at No. 1 and has gone double platinum, with 2.2 million copies sold since October. Hannah clothes are already the No. 1 tween brand at Macy's, and her new double-CD set that serves as a soundtrack and showcase for the actress, Hannah Montana 2: Meet Miley Cyrus, has outsold American Idol winner Kelly Clarkson's new album, both released June 26, by 34,000 copies.

As if that isn't enough for a 14-year-old, Miley's The Best of Both Worlds tour kicks off October 18 and features songs that showcase Miley Cyrus as an artist as well as Hannah Montana. This best of both worlds concept seems to be a smart move for a budding star, since she is establishing her career as a solo artist (Miley Cyrus) as well as a Disney star (Hannah Montana). In a few years, she may be able to drop the whole Hannah persona and continue a singer/actress career as Miley. But for the time being, It makes you wonder if there will be any room in toy and department stores for anything without the Hannah brand-stamp come holidays. Looks like Disney Channel has become nothing more than Miley's kingdom.

Jordin Sparks will win American Idol

Last night's American Idol final made one thing clear to me -- 17-year-old Jordin Sparks should win. And if DialIdol is an accurate indicator, Sparks has the votes -- with a score of 45 to Blake Lewis's 30.

I've never heard of DialiIdol, but according to its website, DialIdol's software speed dials votes for Idol contestants. DialIdol measures the busy signal to predict who will be voted off and it claims that it was 87% accurate for American Idol's fifth season. Moreover, DialIdol claims to have accurately predicted the winner of every show it has covered.

While I enjoyed the story about how Lewis started "beatboxing" because his father wouldn't buy him a drum set, I thought Sparks demonstrated that she was the better singer. She turned the mediocre winner of the songwriting competition -- This Is My Now -- into a tear-jerker that left voters with a much better reason to vote for Sparks than did Lewis's embarrassed rendition.

So I think Sparks will win -- the big question is whether she'll have the kind of post-Idol career that Kelly Clarkson and Carrie Underwood have enjoyed -- or whether she'll fade into Taylor Hicks-like obscurity.

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Last updated: November 14, 2009: 08:37 PM

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