Each weekday, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period, including both price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates. While the ratings 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 company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows. Harman International Industries ( HAR), an audio equipment maker, has been downgraded to hold after the collapse of a previously announced takeover agreement and the company's reduced guidance for 2008 earnings due to increased research and development costs. In September, Kohlberg Kravis Roberts & Co. and Goldman Sachs Capital Partners backed out of an $8 billion acquisition deal, charging that materially adverse changes in Harman's business had occurred. On the plus side, the company's fiscal year fourth-quarter revenue grew 6.1% to $911.1 million and net income rose 62% to $104.9 million. The company has also launched several strategic initiatives that could boost revenue and profitability over the long-run. Harmon International had been rated a buy since October 2005.