WestPoint is loaded with debt of more than $1.6 billion, while cash (up from the fourth quarter thanks to asset sales and additional borrowings) was a mere $520,000. The situation isn't going over well with analysts who focus on bonds, who are perhaps the most insightful in debt-up-to-their-eyeball situations such as this. WestPoint's bonds currently trade in the high 50s. In a report to analysts a week ago, Lehman Brothers credit analyst Christine Daley said she doesn't think the bonds will have value until they reach the mid-40s. "We do not like this credit," she wrote, adding that it reminds her of prebankruptcy Pillowtex (PTEXQ:OTC BB - news - boards). Longtime readers of this column will remember its saga, which was detailed here. At the time, the company kept trying to spin Wall Street on how it would improve profits while cutting costs. Sort of like WestPoint is saying these days.

Daley's bottom line: The company is saddled with way too much capacity for the times, its projections are too aggressive and "we are beginning a period of disappointing earnings going forward."

The company, meanwhile, continues to talk about a positive future. As its current forecasting track record shows, however, that's easier said than done.