Looking at the screenshot you added, I am pretty sure it means that Informer Archibald Goldholme:
* Has a Negotiation skill of 3 stars, but is using an item which gives him an extra star (4 stars total)
* Has a Handicraft skill of 3 stars
* Has a Stealth skill which has been reduced to 1/2 star
* Has a Combat skill which has been reduced to 1/2 star
* Has a Rhetoric skill of 3 stars, but is using an item which gives him an extra 1/2 star (3 1/2 stars total)
The reduced skills might be because of an item he has used (increase negotiation at the expense of combat), or because of an item someone has used against him.
I am not sure about the red stars... it could also mean it's been reduced from 0.5 to 0, but I don't think that's likely?