LOS ANGELES ( TheStreet) -- Newspapers are like dinosaurs, and the ice age is almost here. Newspapers were late to the Internet game. While they've since built a presence online, they haven't figured out how to profit from Web content. Falling advertising revenue has made the situation increasingly dire for companies that own them, such as the New York Times ( NYT), Washington Post ( WPO) and McClatchy ( MNI). The Los Angeles-based Daily Journal ( DJCO) seems to be bucking that trend. With a market cap of $80 million and an average trading volume of 700 shares per day, this stock sees very little action. However, that might change as more investors discover this gem. The Daily Journal has avoided the problems afflicting other news organizations by targeting niches, such as lawyers and readers in small communities in California. This tactic has lead to a profitable mix that capitalizes on the weak coverage of local news on the Web. The company also provides specialized information and software to courts. The company's operating results have been phenomenal. Its return on equity of 28% and net margin of 22% leave the New York Times and Washington Post in the dust. The company is on solid financial footing, with no debt and a current ratio of 2.8. Its shares have climbed 45% in the past year, while the S&P 500 Index and the Russell 2000 Index lost more than 10%. The bull market of the past six months has propelled the company's investments. The company had $3 million in cash in June, up from $994,000 in September 2008, and another $41 million in securities, including unrealized gains of $25.8 million.