2 potential multi-bagger ASX shares for 2022

As we welcome the new year, here's a couple of stocks you may not have heard of that one expert reckons could return your money many times over.

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The new year is often a time for renewal. Fresh ideas, a different approach, and all that.

So perhaps that can also apply to your ASX share portfolio. A time to consider companies you haven't before?

If you need some ideas about how to make your money work for you in 2022, one expert has named 2 ASX shares that he reckons could go ballistic.

At this time of the year, Capital H Management managing director Harley Grosser usually posts one stock that could rocket in the new year on Livewire — but not this time around.

"This year I thought I'd diversify a little and rather than place all my eggs in one basket, I'd give you 2 stocks that we think are genuine candidates to be multi-baggers in 2022, both of which we've been buying recently."

And they're tickers that are not necessarily household names on the ASX:

Merger shareholders are selling off for no good reason

Grosser first mentioned Webcentral Ltd (ASX: WCG) as a bolter in March. While the share price is actually down almost 25% since then, he's still unambiguously bullish on the digital services provider.

"Webcentral recently merged with 5G Networks and is now an integrated IT, hosting, data centre and managed services company, as well as the third-largest domain provider in Australia," Grosser said.

"The complexity of that merger now hides what is, in our view, the cheapest IT services company on the ASX."

He explained that while his team was supportive of the merger, many other shareholders were not.

"Based on the share register and broker data, most of the selling since then has been retail shareholders who previously owned 5G Networks and were issued Webcentral scrip," he said. 

"We think that selling is a significant opportunity."

Webcentral shares closed for Christmas at 40 cents apiece.

Grosser has declared for a while now that the Webcentral share price should hit $1. Despite a tough 2021, his view has not changed.

"We continue to believe this is the case and have been adding to our position as a result."

ASX share at heart of 'the most exciting investment thematic of our time'

Environmental Group Ltd (ASX: EGL) is faithful to its label, providing environmental solutions for industrial processes.

Grosser's colleague, portfolio manager Joshua Baker, explained that the company has 5 different businesses with one acting as the "core" moneymaker.

"The core business is profitable and growing with tailwinds," he posted on Livewire.

"Success in the new business units, now substantially de-risked due to the successful PFAS [perfluoroalkyl and polyfluoroalkyl substances] trial results, which would open new and potentially highly profitable growth opportunities over the longer term."

Environmental Group is a "high conviction investment" heading into 2022, said Grosser.

"EGL is a highly profitable, well managed and growing business that finds itself right in the heart of what is probably the most exciting investment thematic of our time in decarbonisation and green investing."

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Webcentral Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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