Some speculate newspaper stocks have reached capitulation

A silver lining among all the bad financial turmoil for news organizations may have shown through yesterday.
Mark Fitzgerald of Editor & Publisher's Fitz & Jen blog says that newspaper stocks on Wednesday may have reached capitulation, the stage where many investors give up and sell the stocks, leaving bargain hunters to pick them up and start driving prices up again.

In a series of Securities and Exchange Commission (SEC) filings, Harbinger Capital Partners Master Fund disclosed it had reduced its stake in Media General Inc. -- which it amassed in its successful proxy fight to put its representatives on the board of directors -- and it was throwing in the towel on some long bets on the New York Times Co. stock.
The Street reacted Wednesday by chopping 30% of the value of Media General (NYSE: MEG) in just one day. MEG ended at an all-time low. Times Co. (NYSE: NYT) closed at a price the market hasn't seen since the summer of 1988.

With shares like Media General, Gannett Co., and the New York Times Co. all falling between 10 and 30 percent yesterday, many companies are hoping the analysts are right.

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