Ken Howell, CFA, plans to issue a buy recommendation for Glazer Oil, Inc. based on his analysis and forecasts. Howell suspects that the company will soon announce merger plans with a Japanese oil company. To investigate, Howell attempts to call three executives at Glazer. Different secretaries inform Howell that the executives are "attending a conference overseas" or "traveling in Japan." Howell is able to confirm that all three are in the same city in Japan where the potential merger partner is headquartered. Howell feels confident that the merger will go forward. According to CFA Institute Standards of Professional Conduct, Howell may issue a buy recommendation on the oil company:

1.only after urging the companies' managements to publicly disclose their merger plans.

2.only after allowing the companies a reasonable period of time to disclose their merger plans.

3.immediately.

immediately.