Abstract: A combination bit for cutting and stripping insulation from a solid flexible conductor wire and wrapping a stripped end portion of the wire on a terminal in a series of helical convolutions includes a cooperable sleeve having a wall portion forming a guide surface for permitting insertion of the wire into a groove formed on the periphery of the bit. A cutting blade disposed in the groove includes opposed straight cutting edge portions one of which is proportioned such that it engages the insulation of the conductor wire initially in a position which places said edge parallel to a cooperative flat surface portion on said sleeve and tangent to the circumference of the wire insulation. The bit and sleeve are proportioned so as to provide for initial engagement of the insulation by the conductor wire within approximately five degrees of angular rotation of the bit from its starting point.