Shares of several newspaper companies dropped on Monday after a Wachovia Capital Markets analyst predicted lukewarm ad revenue for the second half of the year.

John Janedis said the sector's ad revenue in August was lukewarm, and predicted the third quarter would be below expectations. He cautioned that the Journal Register Co., Lee Enterprises Inc., New York Times Co. and Gannett Co. have the most risk exposure relative to 2008 consensus earnings estimates.

The newspaper industry has been hit by ad revenue declines since its reader shift to the Internet, most seriously in classified advertising.

Janedis indicated that help wanted and real estate ads will continue to decline in the second half of this year and next year due to auto ad recession.

Shares of Journal Register declined 6 cents to $3.05, Gannett fell 14 cents to $46.60 in morning trading and New York Times dropped 39 cents to $20.87. Earlier, the New York Times stock recorded a new 52-week low of $20.84, after ranging from $21.14 to $26.90 over the past year, according to Forbes.

Shares of Lee Enterprises fell 80 cents, or 4.7 percent, to $16.20. The stock has traded between $15.33 and $35.65 over the past year.