Greg NewmanThere\u2019s a whole passenger train full of reasons why investors should stay away from Bombardier stock (Bombardier Stock Quote, Chart, News TSX:BBD.B), from debt and cash flow problems to concerns about management. But for those looking to take a flyer on a well-known Canadian name that\u2019s been ground into the dirt, BBD might be worth a look. So says Scotia Wealth\u2019s Greg Newman who thinks that Bombardier has a number of pluses going for it. After a major run-up in 2018, Bombardier stock has been struggling in 2019, with its share price now down 7.4 per cent year-to-date. The company is in the midst of a multiyear turnaround which has seen it shed a number of business segments in hopes of cutting into its debt and focusing on its more profitable operations. Last year, Bombardier sold off its much-maligned C Series jet program to Airbus while this year saw it push its regional jet program onto Mitsubishi Aircraft, leaving the company with its Global business aircraft program along with its rail business. Those moves may pan out long term but the market has yet to appreciate BBD\u2019s efforts, it seems \u2014which actually makes for a potential buying opportunity, says Newman, portfolio manager and director of wealth management at Scotia, who spoke to BNN Bloomberg on Wednesday. \u201cI\u2019m one of the few people who are actually going to say yes here as a speculative buy,\u201d Newman said. \u201cThe bear case is that they have problems with five legacy contracts, they\u2019ve got a levered balance sheet, they\u2019ve got free cash flow issues, lack of free cash flow visibility and, once again, management credibility.\u201d \u201cBut think about it: they\u2019ve got two viable, growing, global businesses. They\u2019ve got business jets and they\u2019ve got trains, and they actually make really good products and their margins are starting to improve,\u201d he says. \u201cIt\u2019s a hated name, it\u2019s washed out, it\u2019s under-owned and it\u2019s tax-loss sold here,\u201d Newman says. \u201c importantly, on the last quarter management kept free cash flow guidance intact for 2019, and they\u2019re confident in free cash flow turning around in 2020.\u201d Bombardier delivered its third quarter financials on October 31, posting revenue down two per cent year-over-year to $3.72 billion and a loss of $91 million or $0.04 per share on an adjusted basis compared to a profit of $149 million or $0.04 per share on an adjusted basis a year ago. Analysts had been expecting a loss of $0.03 per share. (All figures in US dollars unless where noted otherwise.) At the same time, Bombardier showed an eight per cent organic growth rate over the quarter and is looking to turn profitable very soon, according to CEO Alain Bellemare. \u201cWe continue to make progress driving our turnaround,\u201d said Bellemare, in the company\u2019s third quarter press release on October 31. \u201cAt Aviation, the recent certification of our new Global 5500 and Global 6500 aircraft, and the outstanding in-service performance of our new Global 7500, highlight the strength of our business jet franchise. At Transportation, we are turning the corner. We are making steady progress working through our legacy projects, giving us confidence in our ability to deliver stronger financial performance,\u201d Bellemare said. Newman thinks the selloff on BBD has now been overdone. \u201cOur analysts believe on a sum-of-the-parts basis that this stock is worth C$2.75,\u201d Newman says. \u201cI think that this is something that if free cash flow starts to return and the balance sheet starts to improve and it potentially goes into a virtuous cycle where people look and say, \u2018Oh, my Bombardier is moving,\u2019 and then they realize that they don\u2019t have it anymore because it\u2019s been tax-loss sold and they\u2019re not comfortable with that and they start buying,\u201d he says. \u201cIt\u2019s not your cleanest thesis and it\u2019s a speculative buy but if you\u2019ve got some speculative capital, I\u2019d own a little bit,\u201d Newman says. Bombardier closed down two per cent on Wednesday to C$1.88 per share.