TV Stock Maven Sees Alcoa Shares Hitting $40; CEO Sells At $16

Aluminum stocks are the "best buy out there," television stock maven Dennis Gartman said on CNBC Friday.Gartman's thesis is that increasingly strict fuel efficiency rules will boost demand for aluminum.Under U.S. rules issued two years ago, the average fuel economy of new cars is set to rise to 54.5 miles per gallon by 2025, up from a current 29 miles per gallon."The easiest way to meet EPA requirements for mileage is to make the automobiles and trucks lighter, and aluminum does that," Gartman said. "And everybody's going to be selling a lot of automobiles for the Chinese."But shares in Alcoa Inc. (NYSE: AA) sagged 2 percent Friday, despite a lack of news.Alcoa Chief Executive Klaus Kleinfeld recently sold $12.9 million worth of Alcoa shares for an average of $16.08 each, it was reported Monday."It implies that Kleinfeld now sees Alcoa shares fairly valued," Ian Dogan InsiderMonkey told Barron's Monday. "We think the stock is slightly overvalued at these levels."Shares in the metal-making giant are up nearly 57 percent in the year to date, and Gartman said "everybody laughed at me nine months ago when I started buying it."Gartman thinks the shares will "go to $40."Alcoa traded Friday at $16.68, down $1.87 percent.