Gannett's Moment of Judgment

(MoneyWatch)  The largest newspaper chain in the U.S. is Gannett Co., which also owns 23 TV stations and a bunch of digital properties, including PointRoll, Ripple6 and ShopLocal.

So this week's news that two big credit ratings firms are thinking about downgrading Gannett's stock into junk territory, where it would join The New York Times, is affecting investors big-time.

More than 11.3 million shares of Gannett traded hands during today's session, which ended at $5.31, down 7.97 percent after four consecutive losing sessions. GCI is now valued at less than one-seventh of its high point of $37.75 in the past year.

If you are looking for a benchmark for how traditional media companies are weathering this economic storm, you could do worse than studying Gannett's trajectory. Or, if you prefer, you could check out the NYT, which reached a new low -- $4.68 a share -- today before rebounding slightly to $4.86 and then eleven cents higher in after-hours trading.

No matter how you parse these numbers, our leading old media companies are in very deep trouble.