Each weekday, TheStreet.com Ratings updates its ratings on the stocks we cover. Our model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our buy, hold or sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates.While our model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenue, financial strength and company cash flows. Some recent rating changes are highlighted below. Subprime mortgage lender NovaStar ( NFI) has been downgraded to a sell from a hold. NovaStar lost 32 cents per share in the fourth quarter of fiscal 2006, a significant turn for the worse for a company that earned 73 cents per share in the previous quarter. TheStreet.com Ratings expects this trend to continue. NFI had been rated a hold since April 2005. Furniture manufacturer and retailer Bassett ( BSET) has been downgraded to a sell from a hold. The company lost 35 cents per share in the first quarter of fiscal 2007. It had earned 18 cents per share during the same quarter a year ago. Bassett's stock price has fallen 25.9% over the past 12 months. BSET had been rated a hold since October 2006.