News on Newspapers: They're Fading

In December, The New York Times reported what seemed like the miracle many journalists have been praying for: Monthly sales numbers that actually budged up. Guess what? Even though Times flacks had pointed prominently to the fact that these November numbers had an extra week in them (and a holiday week, no less) it was reported by many as a resounding victory, a comeback. The extra holiday week was not mentioned. A press release mentioning a negative the ensuing article does not? Unforgiveable sin, but understandable, considering.

Then, in January, Nielsen compiled numbers that showed online readership for newspapers had grown by 6% in 2007 over the previous year, truly dismal news. But it was greeted with flowers and chocolate.

Now February numbers come out and they're the worst yet.

Just as metal was thought to be inflammable, big daily newspapers were thought by the journalists who love them to be invulnerable. But, dudes, just as magnesium and titanium are flammable, so too is any business, no matter how beloved, vulnerable.

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Know What You Own: The New York Times operates in the media sector, and some other stocks in its sector include EW Scripps (SSP - Cramer's Take - Stockpickr), Gannet (GCI - Cramer's Take - Stockpickr) and Washington Post (WPO - Cramer's Take - Stockpickr). These stocks were recently trading at $41.63, $29.29 and $692.73 respectively. For more on the value of knowing what you own, visit TheStreet.com's Investing A-to-Z section, and to stay up to date on the media sector, don't miss TheStreet.com's Media section.