The Zelda Therapeutics Ltd (ASX: ZLD) share price has been one of the best performers on the market today.
The shares of the biotechnology company with a focus on developing medicinal cannabis therapies are up a massive 23% to 11 cents.
This is the highest level they have traded at in over six months and have their all-time high of 13 cents within sight.
Why are they higher?
With no news out of the company, today's gain is a bit of a surprise. However, it is worth noting that up until this week Zelda had missed out on the pot stock buying frenzy.
For example, in the last month the Auscann Group Holdings Ltd (ASX: AC8) share price has gained 72%, the Cann Group Ltd (ASX: CAN) share price is up 98%, the Creso Pharma Ltd (ASX: CPH) share price has doubled in value, and the Hydroponics Company Ltd (ASX: THC) share price has more than quadrupled in value.
Considering these strong gains, Zelda's shares do look remarkably cheap on a peer analysis basis. I suspect this is what has driven its shares higher this week.
Should you invest?
While I have been impressed with the work that Zelda is doing and believe it could have a bright future ahead of it, until it is generating meaningful revenues I would suggest watching on from the safety of the sidelines.
The pot stock industry certainly is thriving at the moment, but there's a chance that when momentum slows, share prices could slide lower.
