Long CSX which lowered 4th quarter earnings to 63 cents per share and projected revenues of $2.70 billion last week, could see a sizeable earnings pop despite analysts estimates of $1 per share on $2.76 billion dollars for the 4th quarter. CSX, which his down about 80% from its June high of $71 in late June, said that preliminary data showed that the firm earned 90 cents in the quarter ending in December, excluding a heft one time charge---once you factor in this one time charge, earnings equate to 63 cents. They key here, is that CSX’s rail business is operating with higher than average EBITDA margins, despite the global slowdown. The ultimately question for investors and traders alike, is down 80%, should one buy or sell? The guess here, is that once the official numbers are released on the January 20th, CSX could trade into the mid-$30s

Long IBKR could see an earnings pop, as increased market volatility will boost trading volumes and 4th quarter profit margins. IBKR handily beat the streets earnings last quarter, reporting 65 cents, up 23% year over year, versus 53 cents, as their market-making business grew by 600 basis points. Additional, options trading, which offers even more lucrative commissions grew 10% last quarter, improving the firms EBITDA margins. At the low range of its 52-week range, IBKR could move into the lower $20s on positive news

Long USB, which is one of has taken the least amount of asset-write downs among any financial services firm, will like report an upside earnings surprise, based on lowered analysts estimates for the sector, and a positive expansion in the firms net interest margin. Since short-term interest rates are incredibly low, USB is one of the only financial firms that can “borrow short and lend long”, coining a 1%-2% spread

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