Dealing material non public info

As per mosaic theory, an analyst can make his/her recommendation based on nonmaterial public information and nonmaterial non public info. But what if he come across some material non public information. For example, if an analyst is going to issue a “buy” for an automobile company based on his analysis. When he call one of his contacts in the company for getting some non material non public information, his contact says that there is a decline in the revenue for this particular quarter. So, based on this statement if the analyst changes his mind and issues a “sell” recommendation, is it violates standard II (A)? And he knows that his clients will suffer if he issue a 'buy" as he already decided.

The public information may be material . . . or not.

If he uses the material nonpublic information, he’s violated the Standards.

Thank you magician!!

You’re welcome.