WINNERS & LOSERS: Morgan Stanley Is Predicting Sears Will Die Soon, Making This Rival a Huge Winner.

After Sears CEO Eddie Lampert went on yet another blog-post rant on Monday, this time aimed at one of the dying retailer’s vendors, the company’s shares plunged as much as 14%. And on Sunday, Morgan Stanley wrote casually about the possibility of a Sears bankruptcy in 2017.

“[Sears] one- and two-year credit default swaps imply the market is pricing a high profitability of default over the next 12 to 24 months,” Morgan Stanley said in a note. “If Sears files for bankruptcy this year and subsequently liquidates, JCP could be a major beneficiary.”

That’s right, Morgan Stanley is already predicting who will come out the big winner from a likely Sears Chapter 11 filing and possible liquidation, and it’s J.C. Penney. That surely comes as a slight relief to J.C. Penney, whose stock has also been declining after posting a disastrous first quarter. Last year, after a 33-year hiatus, J.C Penney started selling home appliances again, making its business prepared to benefit should Sears die.

Given Penney’s ongoing troubles, even the death of Sears might not give them much more than a temporary stay.